Brands see strong consumer appetite this festive season despite war-led woes

New Delhi: India's upcoming festive season is showing strong demand indicators, especially for aspirational purchases and premium categories, despite recent headwinds such as inflation and West Asia war-linked supply disruptions, executives at consumer firms, retail chains and consulting firms said.

"Consumer sentiment has been reasonably resilient and seems to be continuing; by and large, the impact of the war wasn't really felt by Indian consumers," said Rakshit Hargave, managing director at biscuits and bakery products maker Britannia Industries. While executives cautioned about the impact of inflation in categories such as cocoa and sugar, as well as El Nino on monsoon rains and thereby farm output and rural demand, they said the consumption outlook remained largely robust.

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Consumption triggers like the GST cut towards the end of last year, inflation coming down in the first quarter and interest rate cuts have provided tailwinds for demand, said Sanjay Sharma, managing director at Orkla India, which makes MTR breakfast mixes and Eastern spices. "We were, at one point, worried about certain structural issues, but demand is back up and continuing. We don't see substantial issues except a deficit monsoon...we've to see how that plays out," Sharma added.

Ahead of the festive period that starts in August, brands and retailers including Fabindia, DLF Malls, Pepperfry and Nykaa kicked off festive campaigns starting this weekend. Hussaine Kesury, chief business officer at furniture maker Pepperfry, said in a statement that the chain's expansion ahead of the festive season would accelerate integration between digital and physical channels.

"Three factors converge for festive 2026 that strengthen the demand case," said Namit Puri, India leader, consumer goods practice, at the Boston Consulting Group (BCG). "Retail inflation averaged 2.5% in the first ten months of 2025, the lowest in a decade, releasing real purchasing power that consumers are now carrying into the festive window. Second, the RBI cut rates by a cumulative 125 basis points in FY26, lowering the cost of EMIs that drives big-ticket festive purchases. And third, GST rationalisation has reduced effective costs on key festive categories, directly making aspirational purchases more accessible."

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According to BCG data, consumer spending during India's 2025 festive season spanning weddings, clothing, electronics and automobiles was ₹12-14 lakh crore. The festive window, the consultancy says, now accounts for roughly 30% of annual retail sales across categories.

"One thing is clear: as India's per capita income crosses $2,500, consumers who're well-travelled, aspiring, been around the world -they're willing to pay a premium for quality," said Arvind Mediratta, founder of Elixiir Foods, which last week opened its first fresh gourmet retail venture, FreshTerra.