Non-urban region continued to drive growth in FY26. As per data sourced from retail intelligence platform, Bizom, FMCG sector’s value growth was pegged at 6 per cent in FY26 led by non-urban regions.
Value growth of non-urban regions was pegged at 6.7 per cent, while urban regions was estimated at 4.9 per cent in FY26.
In comparison, the FMCG sector’s overall value growth was estimated at 9.5 per cent in FY25 by the platform.
Categories such as staples , dairy products and packaged food led the growth of the sector in FY26. While commodities (staples) segment garnered value growth of 12.6 per cent, dairy segment’s growth was pegged at 12 per cent.
Packaged food segment’s value growth stood at 7.1 per cent and personal care segment’s value growth was pegged at 4.7 per cent.
Value growth of beverages and chocolates & confectioneries was in the range of 3.4 per cent -3.2 per cent. However, home care segment witnessed marginal decline in growth.
“Consumption trends in FY26 indicate a normalization phase rather than a broad-based recovery. While staples and dairy continue to show strong, stable growth, segments like personal care have improved year-on-year, indicating resilience in non-essential spending,” said Harshit Bora, Head of Analytics at Bizom.
“However, overall growth remains lower than FY25 and uneven across categories, with segments such as chocolates and confectionery still under pressure. The market is transitioning into a phase of selective, category-specific growth driven by evolving consumer priorities and value consciousness,” he added.
In terms of March quarter alone, Bizom estimated the FMCG sector’s value growth at 3.6 per cent led by non-urban regions (5 per cent value growth). Urban region’s FMCG value growth was pegged at 1.2 per cent. Categories such as packaged foods, dairy products and beverages led the sector’s growth in the March quarter.
Some FMCG firms in their earning preview have stated that they saw improvement in volume growth during the March quarter and rural demand remained resilient. However, consumer product companies are witnessing challenges of rising raw material costs due to the West Asia conflict.