Inflation pushes urban India cautious on FMCG spending

Customer spending has lessened with some goods hit harder.

India’s urban population is more cautious in FMCG spending even if growth persists due to rising inflation, according to Worldpanel by Numerator’s Q3 Asia Pulse report.

Urban FMCG recorded a volume growth of 4.7% in Q3, a modest rise from 4.5% in Q3 2024.

According to the report, inflation appears to be driving consumers to spend and consume less with the shift in spending most visible in categories such as snacking and personal care.

The shift in spending has hit some items more than others such as beverages, which recorded a 1% growth over 2025 compared to an 11% growth in 2024. Milk based drinks dropped from 3% YoY growth in Q3 2024 to a -9% decline in Q3 2025.

Bottled soft drinks appear to be hit the hardest, dropping to a 0.4% figure in 2025 from a 16% volume growth in 2024.

Small neighborhood stores known as Kiranas remain a top option for consumers in urban areas with a 78% channel importance.

Online shopping continues to grow as a go-to place for customers albeit with a drop in purchases per trip due to aforementioned rising prices.