According to the most recent study, the Indian FMCG sector’s sales growth slowed to 5.4% in volume during the September quarter due to disruptions caused by adjustments in the GST rate, but value growth increased to 12.9%.
According to the survey, sales in rural areas continued to surpass those in urban areas for the seventh consecutive quarter, but they slowed down from 8.4% to 7.7% year over year. It stated, “The market saw a 5.4% increase in volume along with a 7.1% increase in prices, with unit growth outpacing overall volume growth – signalling a stronger consumer preference for smaller packs.”
The urban market, which accounts for the majority of the demand for fast-moving consumer goods (FMCG), is somewhat improving, especially in smaller towns. It slowed down sequentially.
About 38% of the demand for FMCG comes from the rural sector, which is driven by affordability and consists of small packages. For the sixth straight quarter, rural India’s volume growth exceeded that of metropolitan areas, with a 7.7% increase compared to 3.7% in urban areas.
Due to a trend towards e-commerce, offline sales continued to drop in metropolitan regions. But modern trade (MT) is also experiencing a resurgence. For the seventh consecutive quarter, rural markets have been at the forefront of the Indian FMCG industry’s resilience.
Additionally, the FMCG industry’s shift to GST 2.0 caused its development in the home and personal care (HPC) sector to momentarily slow down. ” Due to a balance between rising volumes in staple categories and falling volumes in impulse and habit-forming categories, food consumption in Q3 2025 stayed mostly steady at 5.4%.
Due to consistent volume increase in both the food and HPC categories on a lower base, small manufacturers continued to drive FMCG consumption in the September quarter of Q3 2025. Large players, however, reported a decline in consumption in the most recent quarter, according to the report.
