Growth of FMCG Industry in India - Infographic

The FMCG industry in India is expected to grow between 4.5-6.5% in 2024, on the back of continued strength in the sector and the Indian economy.

Advantage India

Growing
Demand

*Indian food processing market size reached US$ 354.5 billion in FY24 and is expected to reach US$ 535 billion by FY26.

*The milk production has increased from 230.58 million tonnes in 2022-23 to 239.30 million tonnes in 2023-24, registering a growth of 3.78% over the previous year.

*Indian dairy firms are projected to grow 11-13% in FY26, led by value-added products, with improved margins and Rs. 3,400 crore (US$ 398 million) capex.

*India’s Rs. 46,571 crore (US$ 5.29 billion) snack market is seeing startup challenges to legacy brands and is set to reach Rs. 1,01,811 crore (US$ 11.57 billion) by 2033, with namkeen adding Rs. 39,591 crore (US$ 4.5 billion) by 2029.

Attractive
Opportunities

*Increased rural consumption presents an opportunity for expanding distribution networks in tier-2 and tier-3 cities.

*The quick commerce market in India currently exhibits a penetration rate of only 7% of the potential market, with a total addressable market of US$ 45 billion, surpassing that of food delivery, indicating that a significant opportunity remains untapped.

*India’s healthy snack market was valued at US$ 3.13 billion in 2025, and it is expected to reach US$ 4.77 billion by 2034, exhibiting a CAGR of 4.80%, driven by functional, natural options, quick commerce, and premiumisation.

*FMCG giants are gearing up to capitalise on the heating Indian pet food market, driven by the rise in pet ownership and disposable income of owners.

Policy
Support

*The Union Budget 2025-26 provides a strong push to consumer spending, particularly benefiting the FMCG industry. The increase in disposable income, rural development focus, and MSME support create an ideal environment for growth.

*MoFPI has approved over 1.44 lakh food processing projects through its flagship schemes to boost rural economies, strengthen supply chains, and promote Indian brands globally.

Higher
Investments

*ITC Ltd. plans Rs. 20,000 crore (US$ 2.33 billion) investment over the next five to six years, focusing on FMCG growth, margin expansion, new product launches, horticulture, and AI-driven operations.

*Hindustan Unilever plans to invest Rs. 2,000 crore over two years to expand manufacturing in premium beauty, wellbeing, and home care segments, capitalizing on rising premiumization demand in India’s FMCG market.

*Nestlé India reported a 46% YoY increase in Q3 FY26 profit to US$ 115.19 million (Rs. 1,018 crore), driven by tax cuts boosting consumer demand. Revenue rose ~19% with strong volume growth across packaged foods, supported by product launches, rural expansion, and quick-commerce channels.