India’s FMCG marketers enter 2026 with cautious optimism and bigger ad bets

After a turbulent 2025 marked by GST-related disruptions and uneven demand, India’s FMCG industry has entered 2026 on a firmer footing. Strengthening macroeconomic fundamentals and a gradual pickup in demand over recent months are expected to lift household consumption of fast-moving consumer goods by about 5% in the early part of the year, according to a new study.

The research by Worldpanel by Numerator (formerly Kantar) estimates annualised FMCG growth through October at 4.2%, down slightly from 4.9% a year ago—signalling a moderated pace of expansion even as overall sentiment improves. Policy tailwinds such as tax relief, GST reforms and softer commodity prices are likely to support volume growth, improve margins and revive urban demand, once again positioning consumption as a key growth engine. Improving margins are also creating room for higher advertising investments, long considered the lifeblood of FMCG growth.

“The sector is expected to increase ad spends by 10% year-on-year in Q3 and Q4, driven by easing inflation and post-GST stabilisation,” industry executives told e4m.

Already the country’s largest advertising category, FMCG was estimated to have spent around ?32,000 crore on advertising in 2024, accounting for nearly one-third of India’s digital ad revenues and contributing approximately ?15,000 crore to the digital advertising economy.

As e4m had reported earlier, the GST rationalisation introduced on September 22 last year—hailed as a major simplification by the Narendra Modi government—had limited immediate impact on advertising spends. FMCG companies, among the biggest advertisers, were unable to pass on GST benefits right away due to disruptions across packaging, inventory and distribution cycles. To avoid mid-cycle pricing confusion, brands held back, which explains why ad spends did not spike immediately after the reform.

That operational disruption has now eased. Companies such as Dabur, Emami, Parle Products, Godrej Consumer Products and AWL Agri Business are rebuilding inventories in anticipation of stronger sales in the coming quarters. However, geopolitical uncertainties—from US–India trade tensions to ongoing conflicts across Europe, Latin America and the Middle East—remain potential headwinds that could test the resilience of advertising growth.

Against this backdrop, FMCG marketers are entering 2026 with cautious optimism, reassessing how and where incremental ad budgets should be deployed.

Focus on sports, culture and entertainment

For large, legacy FMCG brands, scale and cultural relevance remain non-negotiable, especially amid intensifying category competition. Sports and mass entertainment platforms are once again gaining prominence as reliable vehicles for national reach.

Mayank Shah, Vice President, Parle Products, says mass platforms continue to play a vital role in building salience for brands like Parle, even as digital adds precision. “This year, our marketing strategy rests on a few core pillars. Scale and cultural relevance are critical for a brand like Parle. Platforms such as sports and mass entertainment help us connect with consumers across the country, while digital enables sharper targeting and efficiency,” Shah told e4m.

However, the playbook has evolved beyond buying reach alone. Brands are increasingly layering emotion, participation and storytelling onto large platforms to deepen engagement, particularly as generational shifts reshape audience behaviour.

At Britannia, this approach has translated into campaigns that blend culture, technology and consumer participation. Siddharth Gupta, General Manager – Marketing, Britannia, said, “We have always believed in staying culturally rooted while evolving with changing consumer behaviour. This year was about building relevance through consumer involvement, cultural insights and the thoughtful use of technology.”

This philosophy now shapes campaign design. “Whether it was storytelling through packaging, co-creation, or using tools like AI and AR to make engagement more immersive, the focus was on curated, authentic experiences,” Gupta adds.

For younger and challenger brands, community-building and cultural participation are becoming key differentiators. Satyajit Hange, Co-founder, Two Brothers Organic Farms, notes that rising acquisition costs are forcing brands to strike a sharper balance between trust-building and performance. “In 2026, brands will need to be far more intentional about balancing brand-building with performance. Those that combine trust with precision-led digital efforts will lead,” he says.

“Our strategy centres on community, content and cultural partnerships. We plan to scale our offline presence, invest in experiential formats and create content our audience genuinely wants to engage with,” Hange adds.

Data, personalisation and community

As advertising intensity rises alongside GDP growth, the next phase of FMCG marketing will be defined by how intelligently brands deploy data—responsibly, creatively and meaningfully.

Rajiv Dubey, Vice President, Dabur India, believes regulatory evolution will encourage more disciplined practices across the ecosystem. “With stronger GDP growth in H1 2026, advertising intensity will catch up quickly. For Dabur, 2026 will be led by personalisation at scale. Timeless brands will increasingly be built using modern tools,” he says.

At Emami, data-led personalisation is viewed as an enabler rather than a substitute for instinctive brand thinking. Kaushik Vedula, Vice President – Marketing, Consumer Care Business, Emami, notes: “Platforms help contextualise communication, but they do not define strategy. Our 2026 focus will be on data-led personalisation, content partnerships and newer digital ecosystems.”

From TV-first to consumer-first

While sports and mass entertainment are reclaiming budget share, FMCG marketers are clear that media planning is no longer anchored to a TV-first mindset. Instead, it is increasingly consumer-first, shaped by how audiences move fluidly across screens, platforms and physical environments.

Gupta describes this as a structural shift: “The marketing landscape will remain dynamic, with the transition from a TV-first approach to a consumer-first one gaining momentum. Media mixes will be guided by how people actually consume content today.”

This lens is accelerating “phygital” engagement, where digital discovery drives offline participation and helps brands build communities rather than episodic reach.

At Nestlé, the emphasis remains firmly on performance discipline. Varun Sethuraman, Business Head – Breakfast Cereals, Nestlé South Asia, says: “ROI will continue to be critical, especially with rising competition and higher digital spends. As social media and social commerce accelerate, performance-led investments will increasingly influence decisions.”

At the same time, he cautions against losing sight of brand fundamentals. “With the sheer number of choices across categories, brand identity and core assets must be strengthened. There is no single magic solution—we need to engage consumers where they live, interact and shop.”