On the other hand, essentials such as cleaning agents, basic food items and healthcare products continue to drive stable demand
Noting that a clear distinction has emerged in how consumers allocate their fast-moving consumer goods (FMCG) budgets, a report has highlighted that urban buyers are cautiously returning to discretionary purchases.
On the other hand, essentials such as cleaning agents, basic food items and healthcare products continue to drive stable demand, particularly in rural areas, a report by Deloitte and Federation of Indian Chambers of Commerce and Industry (Ficci) said. Skincare products, snacks and indulgence-based items are seeing renewed interest, but with a sharper eye on value and utility.
“Consumers are making more deliberate choices, balancing necessity with occasional splurges, while remaining mindful of their overall expenses,” the report pointed out. Consumer preferences are increasingly being shaped by health consciousness and value-driven choices. A significant 65 per cent of consumers prioritise nutritional content and health benefits, making it the most influential factor in purchasing decisions.
The report noted that consumers are also showing growing awareness about product transparency, as 49 per cent consider ingredients and an equal share emphasises brand reputation and trust. India’s FMCG market is witnessing a surge in premiumisation, particularly in urban centres. As incomes rise and consumers become more health- and value-conscious, demand is shifting towards higher-end products with superior formulations, sustainability credentials and aesthetic appeal, as per the report.
Premium products contribute 27 per cent of FMCG sales but account for 42 per cent of value growth. The report mentioned that while frozen foods remain primarily associated with convenience rather than health, they continue to gain traction as time-saving options.
As product innovation becomes table stakes, FMCG companies are venturing into high-growth, high-margin categories such as frozen foods, snacks, grooming, pet care and speciality beverages. Adding that digital channels are redefining access and loyalty, the report highlighted that online platforms already drive about 17 per cent of total FMCG consumption, with quick commerce (ultra-fast delivery) generating around 35 per cent of FMCG brands’ ecommerce revenue.
Quick commerce alone made up “over two-thirds” of e grocery orders in 2024, with the category expected to grow 40 per cent annually until 2030. The report added that social commerce is increasing, especially in smaller towns, enabling peer-to-peer recommendations and influencer-driven discovery at scale.
