India’s fast-moving consumer goods market is in the middle of a quiet but telling churn. Regional and younger brands are beginning to punch above their weight, eating into the turf of household majors like Hindustan Unilever, Britannia, Dabur and Marico. The shift, according to Honasa Consumer chairman and co-founder Varun Alagh, is being powered by consumers looking for sharper value and products that speak to local preferences.
“These new-age and regional players are coming in with aggressive pricing and better distributor margins, which is putting pressure on the growth rates of larger FMCG companies,” Alagh told PTI. He added that these challengers are adopting vernacular-first strategies, striking a chord in smaller markets where established companies have traditionally dominated.
The numbers back the caution. June quarter earnings saw muted volume growth across several majors. Britannia’s vice chairman Varun Berry admitted to “many battles in smaller territories,” pointing to specific competitor analysis underway to protect share in categories like biscuits. Dabur CEO Mohit Malhotra acknowledged that its Lal Tail business had ceded ground in Uttar Pradesh and Bihar to a local entrant, though he stressed recovery plans were in motion.
HUL’s finance chief Ritesh Tiwari highlighted the detergent bar segment as one particularly vulnerable category, describing it as “spread out with multiple local and global players.” Marico too flagged stress in value-added hair oils, though its leadership expects recovery in Parachute as smaller players find it harder to sustain when input costs stabilise.
In contrast, Alagh said Honasa, which owns Mamaearth and The Derma Co., has bucked the slowdown. Its volume growth, he underlined, is in double digits, ahead of value growth — a healthier sign of more households buying into its portfolio. He expects this trend to hold steady for the remaining three quarters of FY26.
