As China slows, global FMCG and consumer giants from L'Oreal to Nestle bet big on India
India is becoming a key growth focus for global consumer companies. Rising incomes and expanding retail offer significant untapped market potential. Companies see opportunities to increase consumption and introduce new products. This shift occurs as China's growth moderates and mature markets show less room. India's large population presents a substantial long-term opportunity for expansion.
Mumbai: India is transitioning from an emerging market opportunity to a global growth priority for consumer multinationals, as China slows and mature markets offer limited expansion potential. Executives from numerous companies, including Mondelez, L'Oréal, Nestlé, Colgate-Palmolive, Reckitt, Yum Brands, Unilever, Philip Morris, and Danone, highlighted India's low consumption, rising incomes, and growing retail sector as a substantial opportunity at the Barclays Global Consumer Staples Conference in Boston.
Jacek Olczak, CEO of Philip Morris, emphasized the scale and economics of the market, while Brown-Forman's finance chief, James Peters, highlighted India's potential to emulate Brazil's success. The organized FMCG sector in India is projected to grow 8-10% in revenue in fiscal 2027, slightly above the 8% growth forecast for FY26.
However, this growth is expected to be driven by price increases rather than volume expansion, with urban and rural demand facing challenges due to inflation and a below-normal monsoon. Executives view India's market as a prime opportunity to introduce new consumers to various product categories, increase consumption frequency, promote premium products, and expand distribution channels.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
