India is emerging as a key growth engine for global consumer goods companies as demand in the United States and Europe weakens. From packaged foods and beverages to beauty, personal care and alcoholic drinks, multinational corporations are increasingly counting on the Indian market to drive sales, expand consumer reach and support future investments.
More than a dozen global consumer goods leaders, including Coca-Cola, PepsiCo, Nestlé, Unilever, L’Oréal and Pernod Ricard, have highlighted India’s growth potential in their July-September quarter earnings discussions. Their strategies centre on premium products, wider distribution networks and rapidly expanding sales channels such as e-commerce and quick commerce.
The renewed focus comes amid inflation-related pressure on consumer spending and slowing sales across several categories in developed markets.
India Delivers Stronger Growth
The contrasting performance of India and Western markets is becoming increasingly evident in company results.
French spirits maker Pernod Ricard reported a 19% increase in sales in India, which its management attributed to strong consumer demand and the continuing shift towards premium alcoholic beverages. The company, however, reported weaker results in Europe and Latin America, highlighting the importance of India to its growth strategy.
PepsiCo is also looking towards international markets to offset challenges in North America. Chairman and chief executive Ramon Laguarta highlighted the improving trajectory of the company’s international business and its long-term growth opportunities, while acknowledging that its North American operations needed further improvement.
The company has been highlighting the performance of its Indian business across convenient foods and beverages, even as its domestic US market faces pressure.
These developments underline a broader shift in strategy among multinational consumer companies, which are increasingly looking beyond mature economies for opportunities to expand volumes and improve growth.
Premium Products Drive Expansion
Rising demand for premium products is another major attraction for global brands operating in India. Consumers seeking higher-quality offerings, differentiated products and trusted international brands are creating opportunities across several categories.
Pernod Ricard has identified premiumisation as a key driver of its Indian performance. The trend is also shaping strategies in packaged foods, personal care and beauty, where companies are seeking to increase consumer spending through product innovation and stronger brand positioning.
Nestlé chief executive Philipp Navratil said the Swiss food company was focusing on its leading Indian brands, including Maggi and KitKat. Strengthening these established brands is expected to remain central to its efforts to capture consumer demand.
Meanwhile, Coca-Cola chief executive Henrique Braun highlighted the importance of expanding the company’s consumer base through stronger execution and improved distribution, particularly across emerging sales channels.
Distribution and Digital Channels Gain Importance
For multinational companies, growth in India is no longer simply about introducing products. Expanding availability and reaching consumers through more retail formats are becoming equally important.
E-commerce and quick-commerce platforms are providing additional routes to market, allowing brands to reach consumers more conveniently and respond to changing shopping habits. Companies are also investing in distribution to strengthen their presence across different consumer segments and markets.
Unilever reported that its Indian business achieved 15% growth in the September quarter, supported by continued momentum and a favourable comparison with the previous year. The company also gained significant market share in beauty and laundry.
India, Unilever’s largest emerging market, remains a key contributor to its performance. The company reported double-digit volume growth in its largest home-care markets, including India and Brazil.
India Becomes a Strategic Priority
India’s economic outlook is further strengthening its appeal to multinational corporations. According to the Finance Ministry’s October economic review, the Indian economy was projected to grow by 7.35% in the second quarter of FY2026-27, despite an uncertain global environment.
However, sustaining growth will depend on consumer demand, pricing pressures and companies’ ability to expand their reach without weakening profitability.
For global FMCG leaders, India offers a combination of expanding consumer demand, opportunities for premiumisation and new distribution channels. As mature markets struggle to regain momentum, the country is becoming more than an emerging-market opportunity: it is increasingly central to the growth plans of the world’s largest consumer goods companies.