India’s fast-moving consumer goods sector is losing momentum, with fresh data showing stress on household purchases across both cities and villages. According to consumer insights firm Worldpanel by Numerator, the industry’s volume growth slipped to 4 percent on a moving annual total basis till May 2025, down from over 6 percent a year earlier. Value growth too eased to 7.9 percent from 8.3 percent in the same period.

The sharpest slowdown has come from food and beverages, where rising prices have curbed consumption. F&B volumes, excluding wheat, dropped to 4.4 percent growth compared with 7 percent a year ago. In personal care, volume growth has cooled to 4.3 percent while value growth has dropped sharply to 8.4 percent, from 11.7 percent in May 2024. Household care, once a bright spot, has also softened with value growth halving to 7.9 percent from nearly 15 percent a year back.

K Ramakrishnan, Managing Director for South Asia at Worldpanel by Numerator, noted that India’s FMCG demand cannot be viewed as a single market. The study segments the country into four macro clusters. The Urban Affluent, representing only 3 percent of households, are driving demand for convenience-led categories such as frozen foods and ready-to-cook mixes. The Urban Middle, covering 21 percent of homes, are upgrading to premium detergents, body washes and conditioners. The Urban Masses, around 12 percent of households, adopt new products cautiously but tend to buy in larger pack sizes due to bigger family structures.

Rural households, the largest cluster, are also widening their consumption basket. On average, they bought 24 categories in 2022, up from 22 in 2021, signaling aspirations beyond essentials.

The report underlines that India’s FMCG sector, though slowing, is deeply fragmented with distinct consumer behaviours shaping future growth.