India’s retail and FMCG sectors are evolving rapidly, with key trends shaping the future. Non-food FMCG products like skincare and cleaning supplies are seeing steady growth, while inflation is slowing down food sales. AI is revolutionising the industry, from personalised recommendations to digital advertising.
Rural markets are becoming a major focus, with brands like ITC and Britannia enhancing distribution. Organised retail is set to hit $230 billion by 2030, while 60% of retailers see tech as crucial for staying competitive. The dairy FMCG sector is also shifting towards health-conscious, sustainable choices.
Urban consumption is stabilising, giving brands like Marico confidence in higher volume growth. As competition intensifies, businesses that embrace innovation, technology, and consumer-first strategies will lead the way.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. Non-food items post steady rise in FMCG pie despite inflation
Products such as skin creams, floor cleaners and washing powders are finding a little more space in the shopping baskets these days as a combination of aggressive offers, innovative formats and new launches are pushing consumers to stock up these items. The food basket, in contrast, is seeing lower volume growth as inflation concerns prompt consumers to consider cheaper options.
2. FMCG players bet on AI across the value chain
Fast-Moving Consumer Goods (FMCG) players are using artificial intelligence across the value chain to offer consumers personalised tailor-made products. FMCG makers are also leveraging AI in digital advertising and their product offerings based on consumer demands.
3. FMCG firms ramp up rural play
Fast-moving consumer goods (FMCG) majors such as Godrej Consumer, Britannia and ITC are rolling out stock-ready vans to streamline stock replenishment in rural markets, significantly reducing turnaround times for retailers.
4. Organised retail expected to reach $230 billion in India by 2030: Report
India's organized retail sector is experiencing rapid growth, driven by rising disposable incomes and changing consumer preferences, and is projected to reach $230 billion by 2030, according to a joint report by Deloitte and the Retailers Association of India.
5. 60 pc of Indian retailers see technology as key to competitiveness: PwC India Report
According to a PwC India report, 60% of traditional retailers believe that better technology access can boost their competitiveness against online shopping. While online shopping prevails in categories like apparel, in-store shopping remains strong for items like fresh produce. The report suggests blending traditional and modern retail strategies, leveraging AI, and tailoring approaches to consumer preferences to stay competitive.
6. Dairy FMCG trends 2025: What’s driving consumer demand and purchase decisions
The dairy fast-moving consumer goods (FMCG) sector is evolving rapidly, shaped by shifting consumer preferences, technological advancements, and a heightened focus on health and sustainability. As we step into 2025, understanding the key trends driving consumer demand and purchase decisions becomes critical for dairy brands to stay relevant and competitive.
7. Marico aims for higher volumes as urban consumption shows signs of recovery
Marico expects volume growth to improve as urban consumption stabilises. While rural demand has been picking up, urban consumption has been under stress. The company reported 6% volume growth in the third quarter and aims to push it toward high-single digits.
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