India’s FMCG industry recorded a muted value growth of 7.8 per cent year-on-year(y-o-y) in October-December period on the back of volume growth of 2.6 per cent and price growth of 5.1 per cent as per the latest data released by NielsenIQ. This was sequentially lower than the value growth of 13 per cent y-o-y recorded in the September quarter. This moderation in growth was attributed to higher festive base and transitional adjustments linked to GST 2.0 rate revisions. At the same time, e-commerce channel’s share reached 6 per cent of urban FMCG sales with quick-commerce accounting for three-fourth of e-commerce FMCG sales in the December quarter.
GST transition
Nearly 60 per cent of the FMCG portfolio underwent GST rate revisions, requiring coordinated pricing adjustments across manufacturers, distributors, and retailers. “Both price and volume growth softened sequentially, particularly within Traditional Trade, which experienced temporary supply and pricing recalibration during the initial phase of implementation,” NIQ stated in its quarterly snapshot report. However, it noted that there has been stabilisation in GST transition with improved availability of GST-related launches and pricing alignment across the retail network,
“The FMCG industry witnessed heightened activity following GST 2.0 implementation, with expectations of demand stimulus across categories. While initial supply and pricing adjustments led to moderated consumption in the October-December quarter, organized channels responded faster to structural changes. We expect the positive impact of GST 2.0 on consumption to become more visible from the January–February–March (JFM 2026) quarter onwards,” said Sharang Pant, Head of Customer Success – FMCG and Tech & Durables, NielsenIQ in India.
Rural
Rural regions continued to outpace urban regions for the eight consecutive quarters but the gap narrowed in the December quarter. Rural regions recorded 2.9 per cent volume growth in the Q4 CY2025, moderating against a higher base. Urban markets grew 2.3 per cent, supported by recovery in metro consumption and normalization in e-commerce demand
E-commerce
E-commerce continued its upward trajectory and accounted for nearly 6 per cent of urban India FMCG sales in the December quarter. It now contributes nearly 18 per cent to FMCG sales in the top 18 metros and 14 per cent across all metros. “Quick commerce — contributing over three-fourths of E-commerce FMCG sales — remains the key growth engine,” NIQ added.
Regionally, southern metros have surpassed 21 per cent e-commerce share of FMCG sales, while northern and eastern metros are narrowing the gap with Modern Trade. Western markets continue to see Modern Trade leadership, though e-commerce is steadily gaining share from Traditional Trade. Meanwhile, Kirana channel grew merely 1.1 per cent in volume y-o-y in December quarter. Modern Trade grew 15.5 per cent y-o-y, recording a threefold acceleration in OND 2025 compared to September quarter, supported by faster pricing execution and stronger operational systems
Categories
In terms of categories, both food and Home & Personal Care (HPC) saw moderation in volume growth during December quarter. Food segment volume grew 2.8 per cent and value grew 8.8 per cent. Food consumption benefited from GST-led price reduction and stabilization in edible oil prices. While HPC recorded a volume growth of 1.3 per cent reflecting sharper moderation due to higher exposure to GST revisions.
Small players
Small manufacturers sustained growth momentum (7.1 per cent volume growth) in December quarter, continuing to outpace the broader FMCG market in volume growth .“While overall volumes moderated across segments, large FMCG players implemented comparatively steeper price reductions to align with GST adjustments and competitive pressures. Smaller manufacturers demonstrated greater agility in pricing and portfolio adaptation, reinforcing their competitive positioning,” NIQ added.
