NIQ Flags E-Commerce as Major Contributor to FMCG Growth in India

Volume growth in India’s FMCG sector is limited to a small set of companies, as per a report by NielsenIQ (NIQ). Out of more than 64,000 brands, only 129 qualified as “volume winners” in MAT ’25.  

These companies reported over 10% volume growth, alongside at least 0.5% gains in market share and annual sales above ₹10 crore. The figures point to a narrow base of consistent growth within the sector. 

Online Channels Drive Incremental Volumes 

E-commerce platforms are contributing a larger share of volume growth compared to traditional retail. The report notes that online-first product launches are scaling faster due to easier discovery and consumer trials.  

Digital platforms are being used to introduce new products and expand reach without relying fully on offline distribution. Both established companies and new brands are using these channels to build early traction and test demand. 

Acquisitions Support Legacy Company Growth 

Large FMCG firms are adding newer brands to improve growth rates. Hindustan Unilever (HUL) reported 177% volume growth from its digital-first portfolio, including Oziva and Minimalist.  

ITC Limited recorded 102% growth linked to investments in Yoga Bar and Prasuma. Marico saw 86% growth from its investments in 4700BC and Cosmix. 

These additions have helped expand presence in categories such as health foods and personal care. 

Online-First Brands Show Higher Growth Rates 

Several newer brands have reported faster expansion through online-led strategies. Home-care brand Beco recorded 609% volume growth, while fragrance brand Bellavita reported 236% growth in MAT ’25.  

Some companies are also operating entirely online. Cipla Health’s skincare brand Asta Berry reported 38% growth through a digital-only model.  

The report also points to factors such as affordable premium offerings, local preferences, and health-focused products supporting demand. 

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Conclusion 

The NIQ report indicates that e-commerce is contributing a growing share of FMCG volume growth in India, with both large companies and startups relying on digital channels for expansion. 

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