FMCG brands turn up the volume on ads as costs and scrutiny rise

New Delhi: Multiple packaged goods makers increased advertising spends during July-September and said they will sustain the momentum through the next two quarters, despite input cost pressures, to drive volume growth, while food companies also seek to retain consumer trust amid regulatory crackdowns.

Maggi noodles and Nan infant formula maker Nestle India, which has received various notices from regulator Food Safety & Standards Authority of India (FSSAI) over misleading claims in recent months, increased its ad spends by 46% year-on-year in the September quarter-more than twice its revenue growth rate of 20.5% for the quarter.

Also Read: FMCG, auto and consumer companies step up festive marketing spends by up to 20%


"We continued to focus on efficiencies across our operations while significantly increasing investments behind our brands, with advertising and marketing spends up by 46%," Nestle India managing director Manish Tiwary said while announcing the September quarter earnings last week.

"Rising inflation, particularly food inflation, is a reality. We remain focused on navigating these external challenges through sustained investments behind brands," he added.

PepsiCo, Colgate, Parle and Dabur have also indicated to their agency partners that ad spending momentum will continue in the second and third quarters of the current financial year, media buying executives said. "While we are facing continuous pressure on profit margins, protecting consumer demand is crucial for us. Hence, we are scaling up ad spends," the chief of a large packaged goods maker said. He requested not to be named as the company is in a pre-earnings silent period.

Hindustan Unilever, ITC, Britannia and Coca-Cola are among the companies that have not yet declared their quarterly earnings. Marico said in its September quarter pre-earnings update that its advertising and promotion investments have "increased significantly." The Saffola edible oils maker is yet to announce its September quarter earnings. The increase cycles a 25% year-on-year step-up in ad spends in the April-June quarter. Bajaj Consumer Care too increased spends by 7.1% year-on-year in the September quarter.

"We have directions from two of our largest brands that advertising and communication should centre around 'safety and trust' over taste," a senior executive at a large media buying firm. "They are spending ahead of the curve in the current scenario." He requested not to be named, citing client sensitivity. The FSSAI, which has sent more than 150 notices to foods and beverages makers, ecommerce platforms and food services chains for either misleading claims or labelling violations, has itself triggered a surge in ad spends, as brands are looking to reinforce consumer trust.

The regulator has sent notices to Nestle, ITC, PepsiCo, Mondelez, Red Bull, Zepto and Swiggy, among others.

Also Read: TV remains FMCG’s reach engine, but digital mix lifts penetration

India's retail food inflation shot up to 7.74% in September as prices of vegetables, staples, edible oils and sugar increased. Other key inflationary triggers include costs of packaging and transportation. The increase in advertising and marketing spends is a mix of mainstream and regional advertising, and influencer-led social media spends, executives said.

Festive spending on influencer-based advertising and marketing alone is estimated to touch ₹900 crore in 2026, 29% higher over the previous year, according to a report by creator intelligence platform Qoruz. The report noted that 7,200 brands will release creator-based festive campaigns in the year, versus 6,000 last year.