Industry Odisha Bureau, Sep 12 : Global consumer companies are turning to India as China’s growth slows. Executives cite low consumption, rising incomes and retail expansion as reasons for optimism.
India is becoming a bigger priority for global FMCG companies. China’s growth is moderating, and mature markets offer limited room to expand. Executives discussed this shift at a major Boston conference. Nearly a dozen companies took part, including Mondelez and L’Oreal. Nestle and Unilever were also present.
India FMCG Growth Meets Consumption Risks
India’s organised FMCG sector could grow 8-10% in fiscal 2027. That compares with roughly 8% growth in FY26, according to Crisil Ratings. However, this growth may be largely price-led. Volume expansion could moderate to 2-3%, down from 5-6% last year. Inflation continues to weigh on urban and rural demand. A below-normal monsoon adds further risk to rural consumption.
Low Consumption Fuels Long-Term Opportunity
India’s low per-capita consumption is central to the opportunity. In markets with high consumption, companies push premium products. In low-consumption markets, the goal is increasing usage, said Colgate-Palmolive chief executive Noel Wallace. India falls into this latter category. Companies see multiple levers here. They can attract new consumers, raise consumption frequency, and expand distribution.
Mondelez Expands India’s Retail Reach
Mondelez illustrates the scale of India’s distribution opportunity. The company currently supplies about three million Indian stores. India has an estimated nine to ten million stores in total. That leaves considerable room for expansion. Mondelez has also pushed premiumisation through Cadbury Silk. It is investing further in quick commerce. A new biscuit line sold out within six months. The company subsequently added another production line.
L’Oreal and Reckitt Accelerate
L’Oreal reported India growth of 17%. Across its South-east Asian region, which includes India, dermatological beauty grew more than 20%. Regional ecommerce expanded by about 40%. For Reckitt, India delivers high-single-digit to low-double-digit growth consistently. CFO Shannon Eisenhardt called India an “incredible execution engine.” She pointed to considerable scope for wider reach.
Global FMCG Companies Play the Long Game
Other executives echoed this long-term thinking. Coca-Cola’s Henrique Braun called India “a long-term game” for the company. Unilever’s Fernando Fernandez described India’s exponential FMCG growth potential. Danone’s Antoine de Saint-Affrique wants a business scaled to India’s size. Each company sees different opportunities, but the underlying logic is similar. India offers both penetration and premiumisation potential.
Mondelez also named Brazil as a promising market. Brown-Forman’s finance chief compared India to Brazil’s earlier growth. Whether India follows that path remains uncertain.The Execution Challenge
India’s long-term opportunity remains substantial. But near-term consumer demand stays uneven. Inflation and monsoon risks could weigh on rural spending. Revenue growth does not guarantee equally strong volume growth. The real test will be converting India’s scale into sustained consumption. For now, global FMCG companies are positioning for the long run, not an overnight boom.
