FMCG Sector

India’s food safety regulator has issued a clear warning to manufacturers and marketers against labeling herbal infusions as tea, reinforcing long-standing standards aimed at protecting consumers from misleading claims. The Food Safety and Standards Authority of India has clarified that only products derived from Camellia sinensis qualify as tea under existing regulations. The advisory comes amid rapid growth in the wellness beverage market, where herbal blends are increasingly marketed using familiar tea terminology.

India’s fast-moving consumer goods (FMCG) industry is expected to maintain steady growth through 2026, supported by rising household incomes, improving rural demand, and continued premiumization across product categories. Analysts project that volume recovery, coupled with easing input cost pressures, will strengthen margins and encourage new product launches. Urban consumption remains resilient, while rural markets are showing early signs of revival following government support measures.

India’s vegetable oil imports declined sharply by 28% in November, reflecting shifts in global supply, domestic price trends, and changing consumption patterns. The fall was primarily driven by reduced palm and soybean oil shipments, amid tighter international availability and elevated global prices earlier in the year. Analysts note that government policies, including import duty adjustments and efforts to boost domestic oilseed production, may also have contributed to the moderation.

Unilever India continues to report steady growth, driven by strong consumer demand and a diversified product portfolio spanning personal care, home care, and food segments. However, the company faces headwinds from Goods and Services Tax (GST) fluctuations, which impact pricing strategies and margin management. While revenue expansion remains a priority, Unilever is adapting its supply chain, cost structure, and market strategies to mitigate the effects of regulatory changes.

Hindustan Unilever Limited (HUL) has appointed Vandana Suri to its Management Committee, marking a strategic enhancement of the company’s leadership team. Suri, a seasoned executive with extensive experience in brand management and business operations, will contribute to shaping HUL’s growth and strategic initiatives across consumer segments. The appointment reflects HUL’s commitment to strengthening governance, fostering innovation, and driving sustainable business practices.

CavinKare, a prominent Indian consumer goods company, has unveiled a new line of beverages, marking a strategic expansion beyond its core personal care and FMCG products. The launch includes a range of health-focused and innovative drinks aimed at catering to evolving consumer preferences, including functional beverages and ready-to-drink options. This diversification aligns with CavinKare’s vision to strengthen its presence in the competitive beverage segment while leveraging its robust distribution network across India.

India’s fast-moving consumer goods (FMCG) industry is experiencing a measurable cooling in sales momentum following the recent restructuring of the Goods and Services Tax (GST) slabs, according to fresh insights from NielsenIQ. The sector, which had demonstrated resilience despite inflationary pressure and uneven rural recovery, is now adjusting to shifting price dynamics and consumer sentiment. Retailers and manufacturers are witnessing slower off-take across several essential categories as buyers recalibrate spending.

Marico Ltd., one of India’s leading FMCG players, reported a marginal decline in its second-quarter net profit, which stood at Rs 432 crore. The modest dip reflects a complex consumer environment shaped by uneven demand recovery and inflationary pressures across key categories. While the company sustained stable revenue streams through disciplined brand investments and strategic pricing actions, subdued rural consumption and fluctuating input costs weighed slightly on profitability.

Orkla India Ltd, the Indian arm of Norway’s Orkla ASA and owner of popular food brands such as MTR and Eastern, made a promising debut on the stock exchanges on November 6, 2025. The stock opened at Rs. 750 on the NSE and Rs. 751.50 on the BSE, registering a 2.7% to 3% premium over its issue price of Rs. 730. The Rs. 1,667 crore initial public offering (IPO), which was entirely an offer-for-sale, received overwhelming investor interest with a subscription of nearly 49 times. The listing reflects steady market confidence in India’s fast-growing packaged food sector.

Jyothy Labs Ltd., the homegrown fast-moving consumer goods (FMCG) company known for brands like Ujala, Exo, and Maxo, reported a decline in its second-quarter profit even as revenues registered a marginal uptick. The subdued bottom-line performance reflects ongoing input cost pressures and muted volume growth across key categories. Despite the dip in profit, the company’s resilient operational structure and stable demand in household care products suggest a gradual recovery ahead, driven by improving rural sentiment and easing raw material costs.