Weekly FMCG Update: Rural leads, urban joins the party
FMCG is seeing 12% growth in Q4 as beverages and packaged food lead; rural stays strong. The takeaway: the FMCG behemoths have distribution as their strength. eCommerce has provided new brands with the clout they never dreamt of. And so, they are nimble, plus they are capturing the premium end of the FMCG boom.
15 Apr 2025 | By WhatPackaging? Team
With the market growing at 10% annually, RTD coffee is riding a wave of Gen Z and millennial love
Cold coffee gets a shot
Q: What is the size of India's coffee market?
A: INR 173-crore market.
And that's the reason Nestle has upped its caffeine game. It has launched caramel and chocolate Nescafe ready-to-drink (RTD) coffees. With the market growing at 10% annually, RTD coffee is riding a wave of Gen Z and millennial love — part lifestyle, part health-conscious rebellion against sugary colas. From Amul to Nestle, the competition is fierce. Would love to see more packaging players in India create a packaging strategy (with more configs thrown in) for coffee. Less handling of the beverages would make coffee drinking easier.
Flipkart Minutes joins the race in quick-commerce
Q: What is the boost Flipkart has got from Walmart?
A: USD 379-million.
Which is why, Flipkart has gone full throttle on Minutes, planning 800 dark stores by the end of 2025. With the financial boost, it’s taking on BlinkIt, Swiggy Instamart, and Zepto in the fast-growing quick commerce race. The aim? Dominating rapid delivery beyond metros. With its massive seller base and product range, Flipkart’s muscle could give it an edge.
Delhivery acquires rival
Q: What is the size of the Delhivery and Ecom Express deal?
A: INR 1,407 crore
Well, well, well. Delhivery has acquired Ecom Express, its biggest rival in India’s B2C logistics game, for INR 1,407-crore — 80% below Ecom’s peak valuation. With Meesho and Amazon moving logistics in-house, competition has changed shape. This buyout helps Delhivery scale up, even as the segment slows. In the parcel-packed world of third-party logistics, consolidation might just be the fastest route forward.
Urban FMCG revives, ever so slightly
Q: Which city in India saw the most action in March 2025 in the FMCG categories?
A: Lucknow, as per a report by Bizom. It was placed in the top three cities for many of the FMCG categories.
India’s FMCG sector is treading carefully — rural demand is still leading, but urban areas are slowly waking up. Q4FY25 showed 12% volume growth, but margin pressure remains thanks to stubborn input costs. Companies are juggling price hikes and consumer tolerance. Though rising costs hurt, rural resilience and potential urban recovery in FY26 keep spirits cautiously high.