India’s FMCG sector has undergone significant transformation in response to rapid digital adoption and shifting consumer preferences. Industry leaders, including Saugata Gupta of Marico, highlight that this change is not just a shift in channels, but a complete redesign in how consumer goods are created and delivered.
Digital initiatives have surged, with 75% of companies prioritizing digital transformation, though only 12% are fully prepared for the supply chain complexities. Quick commerce has seen rapid growth, now accounting for 35% of online FMCG sales, driven by urban demand for convenience, especially in ready-to-eat and beverage categories.
The rural market has also shown growth, with rising incomes driving demand for premium, health-conscious products. Sustainability has become central to the sector, spurred by the BioE3 Policy promoting eco-friendly packaging and production.
India’s e-commerce FMCG market is projected to reach $100-105 billion by FY2025. Industry leaders stress that success will depend on combining traditional efficiency with digital agility. The focus is shifting from simple digital adoption to integrating traditional and modern retail models while emphasizing sustainability and consumer-centric innovation.