FMCG Giants Reformulate as Health-Conscious Consumers Demand Better Nutrition

In a marked shift towards healthier consumption patterns, India’s top FMCG players are revamping product portfolios to meet the growing demand for nutrition without compromising on taste. From biscuits to baby food, companies are increasingly chasing the sugar-free and low-fat trend, mirroring consumer shifts towards wellness.

With over half the colas sold in India now low or completely sugar-free — according to PepsiCo’s lead bottler Varun Beverages — packaged foods are following suit.

Brands like Britannia Industries, Nestlé India, Tata Consumer Products, Marico, ITC, and Adani Wilmar’s AWL Agri Business are actively reformulating products to reduce sugar, sodium, and fat while boosting the presence of whole grains, millets, and essential micronutrients.

Britannia has led from the front, stating in its FY25 disclosures that between FY19 and FY25, it increased wholegrain content by over 3.5 times, while cutting sugar and sodium levels by 3.4% and 11.9%, respectively.

Nestlé India has reduced sugar by 6%, salt by 10%, and total fat by 2.5% across its product categories. The company, which faced criticism in 2024 over high sugar content in its Cerelac baby food, responded by introducing new no-refined-sugar variants.

“This isn’t just another trend but a movement across all food categories,” said Shashwat Goenka, vice-chairman of the RP-Sanjiv Goenka Group (which owns Nature’s Basket and Spencer’s Retail). “From snacks to desserts, people want options that fit their wellness goals, but still satisfy cravings.”

Tata Consumer Products also reported a 30% reduction in added sugar in one of its ready-to-drink beverage lines.

Industry watchers say this shift reflects both regulatory pressure and evolving consumer expectations. Companies are now more transparent in their sustainability and nutritional goals, as highlighted in their annual and ESG reports for FY25.

With India’s food retail market becoming increasingly health-conscious, the sugar-free and low-fat wave is more than a fleeting fad — it’s becoming foundational to product innovation.