FMCG brands bet big on digital and quick commerce to fuel festive sales

Indian consumers are increasingly browsing premium festive hampers on their smartphones, and are simultaneously picking up familiar brands from physical shelves, creating purchase journeys that blend digital discovery with traditional buying comfort. This hybrid behaviour is forcing FMCG brands to rethink everything from media allocation to product packaging for the season's biggest sales opportunity.

The challenge becomes apparent when examining industry spending patterns. While television advertising volumes dropped 10% in the first half of 2025, according to TAM AdEx’s recent report, digital media investments are surging, with some brands now allocating up to 80% of their festive budgets to online platforms. Brands in this category are now reimagining how to build festive connections with consumers who are increasingly comfortable switching between digital and physical touchpoints within single shopping journeys. 

The divergence in brand strategies reflects this shift. Hindustan Unilever, one of the biggest spenders in the sector, trimmed its spending by 1.4% to Rs 1,656 crore in Q1, reflecting measured caution amid input cost pressures. Yet simultaneously, companies like Marico doubled down on brand investments, with reports noting that the company is strengthening core franchises while scaling newer growth engines. 

Moreover, rural markets are delivering stronger volume growth at 8.4% compared to urban areas at 4.6%, yet urban markets are driving premiumisation trends that reshape category profit pools. This festive season, brands must essentially serve two different consumer mindsets, including the value-conscious rural buyers and urban shoppers exploring premium experiences, often within the same marketing campaign.

The Indian FMCG sector is entering the festive season with a paradox at its core. While traditional indicators suggest robust demand ahead, companies are walking a tightrope between measured advertising investments in the first quarter and plans for the festival months. 

The digital migration accelerates

The most noticeable trend reshaping festive marketing strategies is the accelerated shift toward digital platforms. Akash Agrawalla, Co-founder, ZOFF Foods, reveals, “Digital will lead with 75-80% of our festive ad spends, spanning regional video ads around Raksha Bandhan and Diwali gifting, collaborations with home chefs and food creators for festive recipes, and strong visibility on e-commerce and quick commerce platforms."

This digital-heavy approach reflects broader industry trends. Digital media takes nearly 46% of the total ad spend in fiscal 2025, according to Crisil Intelligence. 

ZOFF Foods’ strategy shows how newer brands are leveraging digital-native approaches to compete with established players. Agrawalla notes that the company is increasing its marketing spend by around 20-25% over last year, driven by strong demand cues for premium spice blends and gifting assortments. The brand focuses on engaging consumers through collaborations with home chefs and recipe creation.

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Meanwhile, established giants like Marico are also embracing this digital transformation. Ashish Goupal, CEO of Marico's India Core Business, points out that "digital media spending has grown significantly in recent years and now accounts for approximately 30% of our total spends, reflecting consumers' increasing digital adoption." 

However, he emphasises that media allocation differs by category and brand. For example, with youth-focused brands like Livon, the company allocates much larger shares to online platforms compared to legacy brands. Livon’s approach to engaging consumers reflects the Gen Z trends. The brand’s social media integrates Barbiecore with content pieces talking about trends like “girl math” and “labubus” and more. 

Quick commerce emerges as a festival game-changer

One of the prominent changes in festive marketing strategies includes the rapid rise of quick commerce platforms. These platforms are reshaping how brands approach festival marketing, creating new opportunities for last-minute gifting and impulse purchases. Mars Wrigley India's Chief Marketing Officer, Nikhil Rao, observes, "Quick commerce gifting has doubled over the last year", and emphasises that "quick commerce is central to our festive strategy."

This channel's importance extends beyond convenience. E-commerce’s online shopping ads grew by 48%, highlighting aggressive market expansion with sales in the FMCG sector expected to grow at a compound annual growth rate (CAGR) of 27% from 2021 to 2026. Quick commerce is reportedly leading this growth trajectory. The immediacy of these platforms aligns with Indian shopping behaviours during festivals, where gifting decisions often happen at the last minute.

Mars Wrigley has developed a clear three-tier portfolio for festive gifting: Value Snickers Gift Pack, Bridge Mixed Minis Tin, and Premium Galaxy Jewels. Quick commerce consumers span different price points and purchase occasions, often considering spontaneous treats or well-thought-out gifting choices.

The chocolate giant is also adapting to changing consumer behaviours within the premium segment. Rao notes that despite cocoa inflation pressures, the brand has maintained and increased media spends with retail media and quick commerce investments taking priority. 

Similarly, brands like Mondelez are shifting their focus towards quick commerce. Nitin Saini, Vice President – Marketing, Mondelez India, comments, “Festivals are about connection, and our focus is on being present wherever consumers are whether through digital engagement, in-store experiences, or by being part of their cherished moments with loved ones.

With promising consumer sentiment, the brand is optimistic about the rest of the season. 

With this, Saini continues, “Our partnership with leading quick commerce players further strengthens our ability to meet consumers at multiple touchpoints, especially for our gifting portfolio.”

Marico’s Ashish Goupal notes that the brand’s primary focus is on driving sharper results through performance marketing, while continuing to invest in long-term brand building. According to Goupal, e-commerce and quick commerce continue to serve as strategic levers for driving innovation and accelerating premiumisation on the digital front. 

“We see them playing a larger role in festive activations, complementing traditional retail by driving discovery and conversions.”

Rural-urban dynamics shape portfolio strategies

The persistent rural-urban consumption gap continues to influence how brands structure their festive portfolios and media strategies. Recent data reveals rural India continued to outpace the urban market in the June quarter with 8.4% volume growth, compared to a 4.6% increase in urban areas, according to NielsenIQ's FMCG Quarterly Snapshot.

Marico is optimistic that its balanced strategy, which includes combining steady rural demand with a focus on driving differential growth in urban-centric and premium portfolios through organised retail and e-commerce, will shape a strong festive season. 

The rural strength creates interesting opportunities for brands willing to adapt their packaging and messaging. ZOFF Foods has capitalised on this trend with smaller, affordable packs designed to tap into growing rural volumes, while simultaneously developing premium gifting SKUs for urban metros. This portfolio allows brands to capture festival demand across demographic segments without diluting brand positioning.

However, urban markets are showing signs of recovery that could shift this dynamic. This potential shift could explain why many brands are preparing to increase festive investments despite cautious Q1 spending.

Premium innovation meets traditions

The festive season has become a laboratory for premium innovation, with brands using the occasion to test higher-value propositions while maintaining accessibility. Mondelez India has launched products like Cadbury Studio for personalised gifting while maintaining its established range, including Celebrations, Silk, and Bournville.

This premiumisation trend aligns with broader market dynamics. The chocolate gifting market, valued at around Rs 1,100 crores according to Mars Wrigley’s Nikhil Rao, who notes that the market already sees premium options accounting for 20% of the category. This substantial premium segment validates brands' investments in higher-value festival offerings.

The premiumisation strategy extends beyond product development to marketing communication. Mondelez's #BrothersWhoCare Raksha Bandhan campaign received positive consumer response by focusing on emotional storytelling rather than product features, according to Saini. He emphasises that "festivals are about connection, and our focus is on being present wherever consumers are, whether through digital engagement, in-store experiences, or by being part of their cherished moments with loved ones."

Yet brands need to balance premium aspirations with mass market accessibility. ZOFF Foods' Agrawalla notes the need to balance "premiumisation for gifting, accessibility for everyday consumption, and innovation that reimagines traditional Indian categories." 

The success of this premium-accessible strategy depends on execution across channels. “For now, our focus is on metros and Tier 1 towns through organised trade and digital commerce,” according to Rao of Mars Wrigley, who acknowledges that premium segments require specific distribution strategies, while brands seeking broader reach must ensure availability across traditional trade channels.

The market recorded a 6% rise in volume alongside a 7.4% increase in prices, with unit growth outpacing overall volume growth-signaling a stronger consumer preference for smaller packs, according to data. This trend supports the dual strategy of premium innovation alongside accessible formats, as consumers demonstrate willingness to pay more per unit while preferring smaller purchase sizes that reduce upfront investment.

The television advertising landscape provides additional context for these strategic shifts. According to the latest TAM AdEx report covering January to June, television ad volumes dropped by 10% compared to the same period in 2024, even as the Food & Beverage sector maintained its leadership position with a 22% share of total ad volumes.

This data explains why brands are reallocating budgets toward digital and quick commerce platforms. As the festive season unfolds, the brands that emerge strongest will likely be those that balance immediate sales objectives with long-term brand building. The industry's performance during this period will set the tone for marketing strategies well into 2026, making these festive investments an indicator of brands' future market positioning.