Archive · 1 Dec 2025
Small FMCG Brands Outperform Giants in India
In India, small and mid-sized companies that sell everyday items like snacks and drinks are growing much faster than the big, well-known brands.
This is happening because these smaller companies understand local tastes better and can sell their products for less money.
Big companies are trying to catch up by focusing more on local markets and improving their products, but small brands are still doing well.
Experts think this trend might continue because small brands can quickly adapt to what people want and offer better prices.
Additionally, the cost of making these products is going down, which means companies can make more money.
This is good news for both the companies and the people who buy their products.
Small FMCG companies in India reported their highest value and volume growth in five quarters, at 20.4% and 12.5% respectively, for the July-September period.
Mid-sized FMCG players also reported strong double-digit value growth and volume growth between 6.8% and 9.7% during the same period.
FMCG giants grew 8.8% in value and 6.2% in volume, with volume growth being the highest in five quarters due to urban market revival.
Small brands have an advantage due to their ability to undercut larger brands on price and their deep understanding of local consumer needs.
FMCG giants are focusing on improving direct reach, brand-building, promotions, and innovation to compete with small brands.
- Who
- Small and mid-sized FMCG companies, FMCG giants, and consumers in India
- What
- Small FMCG brands are growing faster than larger peers in India's FMCG market
- When
- July-September period
- Where
- India, with a focus on rural and urban markets
- Why
- Strong rural demand, easing inflation, local focus, and lower pricing by small brands
Small FMCG Brands
FMCG Giants
Growth Strategy
Small FMCG Brands
Small brands leverage local focus and lower pricing to outperform larger competitors.
FMCG Giants
FMCG giants focus on improving direct reach, brand-building, promotions, and innovation to compete.
Market Performance
Small FMCG Brands
Small brands reported the highest value and volume growth in five quarters, at 20.4% and 12.5% respectively.
FMCG Giants
FMCG giants grew 8.8% in value and 6.2% in volume, with volume growth being the highest in five quarters due to urban market revival.
- Small FMCG Companies
- Annual turnover under Rs 100 crore
- Mid-sized FMCG Players
- Annual turnover between Rs 100-1,000 crore
- FMCG Leaders
- Annual turnover exceeding Rs 5,000 crore
- Small Brands Growth (July-September)
- 20.4% value, 12.5% volume
- Mid-sized Brands Growth (July-September)
- 6.8%-9.7% volume
- FMCG Giants Growth (July-September)
- 8.8% value, 6.2% volume
- Key Advantage of Small Brands
- Local focus and lower pricing
- FMCG Giants Strategy
- Improving direct reach, brand-building, promotions, and innovation
- Raw Material Prices
- Softening, with palm oil, tea, and copra prices moderating
- Expected Beneficiaries
- Godrej Consumer Products, Tata Consumer Products, Marico, Britannia