India’s FMCG future will not be owned by one kind of brand. It will be shared between those who bring scale and those who bring closeness, writes Nikhil Doda, Co-founder and Chief Operating Officer, Lahori Zeera
For a long time, India’s fast-moving consumer goods (FMCG) market felt predictable. The same brands occupied the same shelves, year after year. Their advertisements were everywhere, their distribution unmatched, their presence unquestioned. In many households, buying these products was less a decision and more a habit. You reached for what you knew.
That certainty is fading. Not because multinational brands have suddenly weakened, but because consumers have changed. Quietly. Gradually. In ways that don’t show up immediately in quarterly numbers but are unmistakable on the ground.
Today’s FMCG buyer is more alert. They look twice. They read labels. They ask questions that earlier generations never bothered with. What’s inside this? Why does it cost this much? Is there an alternative? The shift is not dramatic, but it is steady and it has opened up space where homegrown brands are beginning to thrive.
These brands are not winning by competing head-on with global giants. They are winning by noticing what’s missing.
One of the biggest gaps has been relevance. Many multinational products are built for scale and consistency across markets. That strength can also be a limitation. India is not one consumer market; it is dozens of them layered together. Climate, taste, daily routines and spending habits change every few hundred kilometres. Homegrown FMCG brands have leaned into this complexity rather than smoothing it out.
In food, this shows up in flavours that feel familiar rather than internationally acceptable. In personal care, it shows up in products that acknowledge Indian weather, water quality and skin realities. These are not radical innovations. They are small corrections but ones that consumers immediately recognise as “made for me”.
Trust is another space where local brands have quietly gained ground. Large FMCG companies often speak in polished language, promising transformation and perfection. Many newer Indian brands speak more plainly. They explain what a product does without exaggeration. They admit limits. They don’t pretend to solve everything.
This tone matters. Consumers today are sceptical of loud promises. They prefer brands that sound human rather than aspirational. That shift has allowed smaller players to build credibility without massive advertising budgets.
Price sensitivity has sharpened too. With household expenses rising across essentials, consumers are reassessing what they’re willing to pay for everyday products. While premiumisation exists, there is a strong pull towards products that offer better quality without feeling indulgent. Homegrown brands have occupied this middle space effectively, not cheap, not luxury, but fair.
Distribution, once the biggest barrier, is no longer the wall it used to be. Digital platforms have changed discovery. A brand doesn’t need to be everywhere to be known. It needs to be visible where its audience already is. Social media, regional creators and direct engagement have allowed local FMCG brands to grow awareness before scale.
At the same time, kirana stores continue to shape buying decisions. Many neighbourhood retailers are quick to stock local brands that move faster and connect better with nearby customers. These stores don’t think in terms of brand legacy; they think in terms of what sells. That pragmatism has worked in favour of homegrown players.
Speed is perhaps the most underrated advantage. Smaller brands hear feedback quickly and respond without delay. If something doesn’t work, it’s changed. If a pack size feels wrong, it’s adjusted. Large multinational organisations, built for consistency and risk management, often struggle with this pace. What feels like stability from the inside can feel like rigidity to consumers.
This is not a story of multinational decline. Global FMCG companies remain powerful, well-resourced and deeply embedded in Indian consumption. They will continue to lead many categories. But they no longer define the market alone.
What has changed is the confidence of Indian brands. They are no longer trying to look global. They are comfortable being local, specific and rooted. Success is measured less by visibility and more by repeat purchase. Less by aspiration and more by trust.
The white spaces these brands are finding are not obvious gaps. They are emotional gaps, moments where consumers felt unseen or unheard. They exist in everyday frustrations, in small compromises people were used to making, and in the quiet desire for products that simply fit better into daily life.
As India’s FMCG market grows more crowded, not every homegrown brand will survive. Some will scale, some will fade, and some will be absorbed by larger players. That’s inevitable. But the larger shift is irreversible.
India’s FMCG future will not be owned by one kind of brand. It will be shared, between those who bring scale and those who bring closeness. Between global efficiency and local understanding.
In that balance, homegrown brands have found their footing. Not by challenging giants loudly, but by slipping into spaces giants did not realise they had left behind.
Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the publication.
