Q&T Foods Ltd. IPO

The FMCG sector in India has expanded steadily, supported by consumer-driven growth and higher product prices, particularly for essential goods. It provides employment to around three million people, accounting for approximately 5% of total factory employment in the country. As India’s ... fourth-largest sector, FMCG plays a vital role in the economy, with household and personal care products alone contributing 50% of total FMCG sales. The industry is projected to maintain healthy momentum, supported by rising disposable incomes, a young consumer base, increasing brand awareness, and favourable government initiatives and policies. Household FMCG spending rose 8% to Rs. 17,792 crore (US$ 2.07 billion) by April 2025 and is expected to rise further by year-end, driven by staples as well as non-staples. More importantly, India’s vast middle-class population, which is larger than the total population of the USA, and its median age of just 27 are shaping consumption trends. Rising aspirations, greater financial inclusion, and social safety nets are further fuelling demand. The sector continues to demonstrate resilience, with companies focusing on efficient manufacturing, supply chain management, consumer insights, and digital-first communication strategies to withstand disruptions and create long-term value. According to NielsenIQ, India’s FMCG market grew 13.9% in value and 6% in volume in Q1 FY26, led by rural demand, smaller pack sizes, and e-commerce growth. Key companies also posted steady performance in the same quarter. Dabur expected single-digit revenue growth, Nykaa’s beauty segment registered mid-20% GMV growth, Tata Group’s Trent expanded 20%, and Kalyan Jewellers rose 31%, supported by improving urban sentiment and easing inflation. As per NielsenIQ, India’s FMCG sector posted steady momentum in the Q2 FY26 with value growth of 12.9% and a 5.4% rise in volumes, supported by stronger rural demand with 7.7% volume expansion. Diwali boosted FMCG sales, with essentials, dairy, oils, and snacks seeing strong demand and e-commerce orders rising over 85% in the first week festive season sale. India’s direct selling industry is also expanding, with sales of Rs. 22,142 crore (US$ 2.58 billion) in FY24, reflecting 4.4% YoY growth. Over the last five years, the sector has clocked a 7.15% CAGR, with the number of active direct sellers reaching 88 lakh. Female participation has also risen from 37% in FY23 to 44% in FY24, highlighting the growing inclusivity of this channel. Looking ahead, India’s FMCG sector is expected to record a slight revenue increase of 100 to 200 basis points, bringing growth to 6 to 8% in FY26, supported by stable rural demand and a revival in urban markets. The urban segment currently contributes about 62% of total revenue, but rural India has emerged as a stronger growth driver in recent years. Semi-urban and rural regions now account for 50% of total rural spending on FMCG, with rising incomes and evolving consumer preferences narrowing the urban–rural gap. Read more