Urban India spends more, shops less often

The contrasting trends point to households consolidating their purchases, even as inflation and higher product prices push up the average shopping bill. For FMCG companies, this raises an important question: how much of the reported growth reflects genuine demand expansion and how much is price-led? Everyday goods spending across 10 Asian markets grew just 1.5% in the April-June quarter, half the 3% growth recorded in the previous comparable period.

Thailand saw a 7.1% decline, while mainland China witnessed private-label products gaining traction in smaller supermarkets and discount retailers. India's urban FMCG value growth, meanwhile, accelerated to 13% in the June quarter from 9% a year earlier. But the underlying shopping behaviour suggests consumers are selective about their spending. "India's FMCG market is seeing strong value growth, with urban FMCG growing 13%, but what is equally important is how consumers are changing the way they shop.

Households are spending more on each trip while shopping less frequently, suggesting that consumers are becoming more deliberate and consolidating their purchases," said Manoj Menon, director-commercial, Worldpanel Division. The category mix offers a brighter signal for consumer companies. Personal care emerged as the fastest-growing major FMCG category, with value growth accelerating to 16.3% in the June quarter of 2026, nearly twice the 8.7% recorded a year earlier.

Its outperformance suggests consumers continue to spend on grooming and higher-value products where they see clear benefits, even as they become more cautious about shopping frequency. Online FMCG sales value jumped 48.9%, lifting the channel's share from 3% to 4% in the period under review. Buying households increased 32.1%, while shopping occasions rose 11.4%. With spending per online trip up just 1.2%, digital platforms appear to be moving beyond occasional bulk purchases towards more regular replenishment.

Kirana stores remain the dominant FMCG channel, but their value share slipped 1.5 percentage points, signalling intensifying competition from online platforms. For brands, the challenge is now twofold: protect volumes as consumers consolidate purchases and adapt distribution to a rapidly changing retail landscape. Menon said companies must remain relevant across shopping occasions, price points and channels as Indian consumers become increasingly considered in their choices.