FMCG industry looks for high-single-digit volume growth in 2026 with better margins
- IBEF
- December 23, 2025
According to a report, India’s FMCG industry will likely continue to see high single-digit volume growth in 2026 due to improving demand and reduced cost pressures. According to industry executives, demand for FMCG products is starting to recover in urban locations, and rural demand will continue improving progressively over time. Stabilisation of input costs for many companies in the FMCG sector is enabling margin expansion following a prolonged period of price inflation. Volume-driven growth is expected to contribute more to overall industry growth as previous price actions are normalised.
In addition, better margins are anticipated based on slowing commodity inflation as well as continued improvements in operating efficiency. In addition to these factors, FMCG manufacturers’ attempts to preserve profitability through prudent pricing strategies, optimizing the product mix, and managing their operating costs will support their overall profitability. The anticipated stability in demand for essential and discretionary categories, because of improved consumer sentiment and consistent income levels, is expected to continue. FMCG manufacturers remain cautiously optimistic, with the belief that the combination of sustained volume growth along with an anticipated recovery in margins will result in increased earnings momentum for 2026. Overall, the trends indicate a return to normal economic fundamentals for the FMCG sector because of demand recovery, pricing stability, and continued strategic execution by FMCG manufacturers.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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