India is increasingly moving from being an emerging-market opportunity to becoming a strategic growth priority for global consumer companies, as slower growth in China and limited expansion opportunities in mature economies push multinational FMCG brands to search for their next major market. Companies including L’Oréal, Nestlé, Mondelez, Reckitt, Unilever and Colgate-Palmolive are highlighting India’s consumer potential.
The attraction is straightforward: India combines a huge population with rising incomes, expanding retail networks and relatively low per-capita consumption across several consumer categories. That gives multinational companies multiple ways to grow—not only by selling more premium products but by bringing new consumers into categories, increasing consumption frequency and expanding distribution.
L’Oréal, for instance, reported 17% growth in India, while Reckitt continues to record high-single-digit to low-double-digit growth. Mondelez is also expanding its Indian distribution network and investing in premium products and quick-commerce channels.
Nestlé’s performance provides another indication of the shift. Its Asia, Oceania and Africa business excluding Greater China recorded 7.7% organic growth in the first half of 2026, with India among the markets delivering double-digit real internal growth. By contrast, Greater China recorded only 2% organic growth, with several categories still contracting.
But India’s opportunity is not without challenges. India’s FMCG sector remains highly competitive, while near-term consumption is uneven. Crisil expects organised FMCG revenue growth of 8–10% in FY27, but volume growth could moderate as inflation and weaker rural demand weigh on consumers.
That makes India a long-term bet rather than an easy replacement for China. Global brands will need to localise products, control prices, strengthen distribution and compete with increasingly capable Indian companies.
The broader shift is nevertheless significant. As China’s consumer economy becomes harder to rely on for rapid expansion, India is emerging as one of the few markets large enough to potentially reshape the global growth strategy of FMCG giants.
