GST transition moderates FMCG industry growth to 7.8% in December quarter: NielseIQ

India’s FMCG industry recorded a muted worth growth of seven.8 per cent year-on-year(y-o-y) in October-December interval on the again of quantity growth of two.6 per cent and value growth of 5.1 per cent as per the most recent information launched by NielsenIQ. This was sequentially decrease than the worth growth of 13 per cent y-o-y recorded in the September quarter. This moderation in growth was attributed to greater festive base and transitional changes linked to GST 2.0 fee revisions. On the similar time, e-commerce channel’s share reached 6 per cent of city FMCG gross sales with quick-commerce accounting for three-fourth of e-commerce FMCG gross sales in the December quarter.

GST transition

Almost 60 per cent of the FMCG portfolio underwent GST fee revisions, requiring coordinated pricing changes throughout producers, distributors, and retailers. “Each value and quantity growth softened sequentially, notably inside Conventional Commerce, which skilled short-term provide and pricing recalibration through the preliminary part of implementation,” NIQ said in its quarterly snapshot report. Nonetheless, it famous that there was stabilisation in GST transition with improved availability of GST-related launches and pricing alignment throughout the retail community,

“The FMCG industry witnessed heightened exercise following GST 2.0 implementation, with expectations of demand stimulus throughout classes. Whereas preliminary provide and pricing changes led to moderated consumption in the October-December quarter, organized channels responded sooner to structural adjustments. We anticipate the optimistic impression of GST 2.0 on consumption to turn out to be extra seen from the January–February–March (JFM 2026) quarter onwards,” mentioned Sharang Pant, Head of Buyer Success – FMCG and Tech & Durables, NielsenIQ in India.

Rural

Rural areas continued to outpace city areas for the eight consecutive quarters however the hole narrowed in the December quarter. Rural areas recorded 2.9 per cent quantity growth in the This autumn CY2025, moderating towards the next base. City markets grew 2.3 per cent, supported by restoration in metro consumption and normalization in e-commerce demand

E-commerce

E-commerce continued its upward trajectory and accounted for almost 6 per cent of city India FMCG gross sales in the December quarter. It now contributes almost 18 per cent to FMCG gross sales in the highest 18 metros and 14 per cent throughout all metros. “Fast commerce — contributing over three-fourths of E-commerce FMCG gross sales — stays the important thing growth engine,” NIQ added.

Regionally, southern metros have surpassed 21 per cent e-commerce share of FMCG gross sales, whereas northern and japanese metros are narrowing the hole with Trendy Commerce. Western markets proceed to see Trendy Commerce management, although e-commerce is steadily gaining share from Conventional Commerce. In the meantime, Kirana channel grew merely 1.1 per cent in quantity y-o-y in December quarter. Trendy Commerce grew 15.5 per cent y-o-y, recording a threefold acceleration in OND 2025 in contrast to September quarter, supported by sooner pricing execution and stronger operational methods

Classes

When it comes to classes, each meals and Residence & Private Care (HPC) noticed moderation in quantity growth throughout December quarter. Meals section quantity grew 2.8 per cent and worth grew 8.8 per cent. Meals consumption benefited from GST-led value discount and stabilization in edible oil costs. Whereas HPC recorded a quantity growth of 1.3 per cent reflecting sharper moderation due to greater publicity to GST revisions.

Small gamers

Small producers sustained growth momentum (7.1 per cent quantity growth) in December quarter, persevering with to outpace the broader FMCG market in quantity growth .“Whereas total volumes moderated throughout segments, massive FMCG gamers carried out comparatively steeper value reductions to align with GST changes and aggressive pressures. Smaller producers demonstrated better agility in pricing and portfolio adaptation, reinforcing their aggressive positioning,” NIQ added. 

Revealed on March 5, 2026