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Rural demand returns to urban India: FMCG sector report

Business

Between April and June 2025, India's FMCG sector finally saw a real comeback in city demand after a long slump.
Big brands like Hindustan Unilever, ITC, and Nestle reported higher sales volumes, helped by better economic vibes and supportive policies.

Urban demand helps boost sales for big brands

Hindustan Unilever doubled its growth rate to 4%, even while spending more on branding.
ITC's non-cigarette products grew revenue by 5.5%.
Nestle's sales rose too, but profits dipped due to rising costs.
Dabur took a hit on drinks because of early monsoon rains but scored big wins with its home and personal care lines.

Overall growth at about 3.9%

Early rains hurt summer product sales across the board, so overall FMCG growth for the year landed at about 3.9%.
Still, experts think festival season demand and smart policy moves should keep things looking positive for the rest of 2025—even if food prices wobble or weather acts up again.