Global FMCG majors bet big on India as sales outshine China, Europe

This comes at a time when India is grappling with elevated retail inflation. The country’s headline inflation rose to 5.54% in September—a 22-month high—up from 4.82% in August. Inflation in the world’s fastest-growing economy has now climbed for 11 consecutive months. In response, the Reserve Bank of India raised its key interest rate in October for the first time since 2023 to curb price pressures sparked by surging fuel costs amid the US-Iran war.

Experts believe India's vast, untapped market puts it in a unique position. “Unlike mature markets, where growth is often driven by market-share gains and pricing, India still offers significant opportunities to expand the underlying consumer base,” said Naveen Malpani, partner and consumer industry leader, Grant Thornton Bharat.

Unilever CEO Fernando Fernandez’s comments reflected this confidence. "I am absolutely convinced that India will be for Unilever in the next decade what China has been for some of our competitors in the previous decade,” Fernandez said at the company’s ‘capital markets day’ event on 4 November.

Blowout quarter

This bullish sentiment was echoed across global FMCG majors’ September-quarter earnings calls. Cadbury maker Mondelēz reported rapid expansion, with executive vice president and chief operating officer Luca Zaramella saying during an earnings call on 30 October that the company is "delivering numbers that are north of 20% growth in India... numbers that have quite frankly defeated the odds of the market. Particularly, if you compare us to other companies." To capitalise on this momentum ahead of the festive season, Mondelēz added about 130,000 retail outlets in India during the quarter.

Colgate-Palmolive also expressed optimism about India after facing market share erosion from local rivals such as Dabur and various startups in recent years. "India, I think, is hitting stronger now, getting the execution done well in the rural trade, getting the pricing where it needed to be, consistent, and now trying to optimize the premium part of the category,” Noel Wallace, the company’s chairman, president and chief executive, said on 30 October. The comments follow a major leadership reset at its Indian arm after months of sluggish growth. Prabha Narasimhan resigned as CEO of Colgate-Palmolive India in late August and was succeeded by Manish Anandani.

Similarly, L'Oréal reshuffled its top management in India in 2025 to drive growth. "India, where I was just a couple of weeks ago, is doing great. We create for India much more than we did before. We are accelerating e-commerce with a focus on quick commerce, which is an important part of the e-commerce market there,” Nicolas Hieronimus, chief executive of L'Oréal SA, said on 22 October.

Nestlé SA chief executive Philipp Navratil singled out India as a key growth driver in its food and snacks segment, highlighting the strong performance of "billionaire brands" Maggi and KitKat. Nestlé, which previously identified India as its largest market for KitKat, reported that the country delivered 20% organic growth in the quarter—marking one of the highest growth rates across its global footprint.

Dettol maker Reckitt lowered its annual revenue forecast and reported revenue growth below analyst expectations in the third quarter, hampered by a challenging consumer environment and manufacturing constraints in North America. However, it reported double-digit growth in South Asia and India, complementing its expansion strategy in emerging markets.

Coca-Cola said each of its top 10 brands clocked double-digit growth in India during the quarter. The company’s new ‘Sprite & Spicy’ variant gained significant traction through quick-service restaurant (QSR) channels, helping drive a 20% volume growth for the Sprite brand across the region.

Doubling down

To capitalise on this growth, multinationals have stepped up their long-term capital commitments in India. On Wednesday, Unilever announced an additional €35-million investment to expand its research & development capabilities in the country. This follows Nestlé India’s ₹225-crore capex announcement on 19 March for a new Munch production line at its Sanand factory in Gujarat. In June, HUL inaugurated the Unilever Fragrance Hub at IIT Bombay, making India only the third country after the UK and the US to host a facility under the group's global fragrance innovation programme. “India is increasingly being viewed as both a long-term consumption market and a strategic manufacturing and innovation hub," Malpani said.

Despite persistent inflation, international agencies remain optimistic about India's economic resilience. In its October 2026 World Economic Outlook update, the International Monetary Fund (IMF) raised India’s GDP growth forecast to 7% for both FY27 and FY28. “India's growth remained robust, underpinned by domestic demand and services, despite higher oil prices,” the IMF noted. Similarly, the World Bank upgraded its real GDP growth projection for India for FY27 to 7.1% from 6.6%, while Moody’s raised its FY27 forecast to 7% from 6%.

Neethi Lisa Rojan

Neethi Lisa Rojan is a senior correspondent focusing on the consumer goods and retail sector working from Mumbai for Mint since 2026. She has been a journalist for a little over two years with Moneycontrol and The Morning Context. She has covered the consumer and healthcare sectors in earlier roles. She was a double gold medallist during her bachelor’s from Mahatma Gandhi University Kerala and post-graduation from Pondicherry University. With a background in commerce and journalism, she brings a sharp analytical lens to stories on India’s fast-evolving consumer goods and retail sector.With an academic background in business administration and a keen eye for financial statement analysis, she bridges the gap between corporate data and compelling narrative journalism. Her reporting is characterized by a focus on how evolving consumer behaviours and regulatory changes impact India's largest mass-market brands. She is a keen learner with diplomas in international business, human rights and journalism. She specialized in business journalism at the Asian College of Journalism, Chennai. When she is not looking into shopping carts, you can find her explaining the latest conspiracy theory.