Consumers are increasingly willing to pay a premium when brands substantiate ingredient, health and social-impact claims, creating a new pricing opportunity for FMCG companies
One in two Indian consumers is willing to pay up to 10 per cent more for products that provide greater transparency on their packaging, particularly when claims around ingredients or social impact are substantiated, according to reports released by Deloitte India and the Federation of Indian Chambers of Commerce and Industry (FICCI) report.
The finding points to a more specific opportunity for FMCG companies than broad-based premiumisation, with consumers appearing more willing to pay when they can verify what they are getting in return for the higher price.
“One in two consumers are saying that they will pay 10 per cent more if there is greater transparency on the pack, whether it is about ingredients or social impact that is substantiated,” Ramanathan said while speaking with a reporter on the sidelines of Massmerize 2026.
The finding comes against a backdrop of growing consumer scrutiny of product formulations. The Deloitte-FICCI Massmerize 2026 report found that 74 per cent of consumers read ingredient or nutritional information before making a purchase, while 63 per cent had chosen one product over another based on ingredients, formulation or health benefits.
More than half, or 52 per cent, had also switched from a preferred brand because another product offered better ingredients or formulation.
Consumers Want Better Products, But Premium Has A Ceiling
The willingness to pay for transparency comes with a clear price constraint. Deloitte’s consumer survey found that nine in 10 consumers are willing to pay some premium for healthier, cleaner or more transparent formulations. However, 33 per cent said they would pay only up to 5 per cent more, while 31 per cent were willing to pay 6–10 per cent more. Only 10 per cent were willing to pay more than 20 per cent.
The gap between willingness and actual spending is even sharper across income groups. Among lower-income households, 83 per cent said they were willing to pay a premium, but only 26 per cent had actually paid one in the previous six months. Among higher-income households, 91 per cent expressed willingness and 63 per cent had actually paid a premium.
For FMCG companies, this makes substantiation increasingly important. A higher price alone may not justify premium positioning; brands need to demonstrate a tangible difference through ingredients, formulation, health benefits or independently verifiable claims.
Changing Purchasing Pattern
The pricing shift is taking place alongside a change in the frequency and channel of FMCG purchases. Deloitte’s report found that FMCG purchase occasions have increased to 156 a year from roughly 80–90 five years ago, while average quick-commerce order values have risen from around Rs 250 to Rs 650–700.
Quick commerce is also increasingly becoming a route for consumers to discover new brands. The report found that 77 per cent of consumers had discovered new packaged-food and beauty and personal-care brands through quick commerce. The channel is particularly significant for emerging brands. Digital-first brands account for more than 30 per cent of quick-commerce sales, while emerging brands in smaller cities are recording sales growth two to three times faster than in metros, according to the report.
This could give newer brands an opportunity to compete with established FMCG companies by using product formulation, transparency and demonstrable benefits as differentiators rather than relying only on brand heritage and distribution reach.
Supply Chains Move Closer To Consumers
The changing consumer proposition is also influencing how companies organise their operations. “Companies are using AI to improve forecasting and moving manufacturing closer to consumption centres rather than where production is cheapest,” Ramanathan said while speaking with reporter.
The report identifies supply-chain volatility as a growing structural issue for FMCG companies, driven by fragmented omnichannel demand, commodity-price movements, last-mile constraints and the expansion of hyperlocal delivery.
Companies are increasingly diversifying suppliers and regionalising sourcing while positioning inventory closer to demand centres. The report also points to a shift towards advanced demand forecasting, scenario planning and network optimisation to reduce stock-outs and excess inventory.
Ramanathan said AI could generate 8–10 per cent cost savings across the value chain, while 61 per cent of companies surveyed are investing in employee upskilling for AI adoption. “The bigger challenge now is not proving AI’s value but scaling it across organisations,” he said.
For India’s FMCG sector, the emerging opportunity is therefore increasingly tied to the ability to justify a higher price with verifiable product benefits. With consumers scrutinising ingredients more closely but remaining reluctant to pay steep premiums, the next phase of premiumisation may depend less on positioning a product as premium and more on proving why it deserves the premium.
