Global FMCG giants find an Indian answer to their Western slowdown

New Delhi | Mumbai: More than a dozen global consumer chiefs including those of Coca-Cola, L'Oreal and Pernod Ricard have called out India as a crucial growth market to push expansion and investments at a time when home markets of the US and Europe underperform.

In their earnings calls for the July-September quarter, Nestle, Unilever, Reckitt, PepsiCo, Danone and Heineken among others said they are looking to capitalise on demand for premium products, expand distribution and tap emerging sales channels, including ecommerce and quick commerce, in India.

The optimism comes despite recent headwinds such as inflation-led slowing of sales across various consumer categories.

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New York-based PepsiCo highlighted its India unit's performance across convenient foods and beverages during the quarter, even as it lagged in its home market of North America.

Chairman Ramon Laguarta said the quarter marked "a strategic shift towards international markets and faster-growing parts of the company's portfolio."

While acknowledging that the maker of Pepsi cola and Lay's chips "still has work to do in North America" as it lowered its earnings outlook, Laguarta said: "We are encouraged by the trajectory of our international business and its long runway for growth."

Paris-headquartered spirits maker Pernod Ricard highlighted distinctly contrasting growth for India and some of its developed markets at its earnings call. "India was a particular highlight, with sales up plus 19%; the market continues to enjoy dynamic consumer fundamentals, and sales are driven by strong consumer demand as well as the continuation of the premiumisation trend," its executive vice president, finance and tech, Mauve Croizat said. "We reported softer results in Europe and in Latin America," he added.

Pernod said in its management commentary that excluding the US and China, rest of world sales grew 4% with strong performance across a number of Asian markets.

Many multinationals are looking to expand their reach in the country even as the government said India's growth momentum has remained firm despite a challenging grim outlook for global growth amid elevated borrowings by countries.

"India weathered the Middle East crisis better than expected, with the economy projected to grow by 7.35% in the second quarter of the financial year 2026-27," the finance ministry said in its monthly economic review for October on Thursday.

Nestle chief executive Philipp Navratil said the Swiss packaged foods maker is directing focus towards its "billionaire brands" in the country such as Maggi and KitKat, while Coca-Cola chief executive Henrique Braun said it is expanding its consumer base in India by strengthening execution and distribution across emerging channels.

Unilever said its India business gained significant market share in beauty and laundry, underscoring the market's growing importance to global consumer companies.

The maker of Dove soap and Knorr soups said India, its largest emerging market, grew 15%, continuing the momentum of the first-half and lapping a GST-led lower prior-year comparator.

The Dutch consumer goods maker said growth in the September quarter was led by emerging markets, with double-digit volume growth in its largest home care markets of India and Brazil.