Premium brands account for 15% of FMCG volumes in India: Report

Worldpanel India unveiled its latest findings on premiumisation in India’s FMCG sector. The survey highlights how premium consumption in India is evolving- from metro elites to rural aspirants and uncovers where the next wave of growth will come from.

Premium brands make up 15% of FMCG volumes across categories such as detergents, bar soaps, toothpaste, tea, edible oils, biscuits and skin creams, according to a report released by Worldpanel India. The survey focused on premiumisation in India’s fast-moving consumer goods (FMCG) sector, showing how demand for higher-priced products is spreading beyond metros into smaller towns and rural areas.

While the pace of premiumisation slowed in 2024 due to weaker rural demand, long-term trends remain strong as households across urban and rural areas grow more aspirational, the report noted.

Key findings of the report were:

Rural contribution rising: Rural India’s share of premium FMCG volumes has increased from 30% in 2021 to 42% in 2025 for super-premium categories, and over 50% in affordable premium segments.

Spending shifts in metros: Super-premium consumers in major cities are redirecting expenditure from groceries and dairy to lifestyle categories such as housing, travel, luxury cars, smartphones and home décor.

Local brands gaining ground: Smaller homegrown brands that focus on health, natural and functional attributes are expanding rapidly in super-premium categories, in some cases outpacing global competitors. Examples include Burhani Liquid Dishwash in Madhya Pradesh, AVT Gold Cup Tea in Tamil Nadu and Meera Shikakai Shampoo in Karnataka and Odisha.

Affordable packs drive growth: Small pack sizes are proving effective in attracting new buyers without reducing the premium positioning of products. Sensodyne (75g), Nabati wafers (30g) and Tresemme (6ml) are cited as examples. Leading players such as Dove, Malkist, Sensodyne, and Taj Mahal Tea have also introduced smaller packs to balance affordability with a premium experience.

Channel opportunities: Despite strong growth in e-commerce and quick commerce, premium FMCG products remain underrepresented in fast-delivery platforms. Categories such as toothpaste, skincare and packaged foods show untapped potential in this space.

Premiumisation beyond FMCG: The report also highlights similar trends in other industries. Luxury housing priced above Rs 3 crore saw sales rise 80% in 2024, premium smartphone volumes grew 8% year-on-year in Q2 2025, and luxury car sales rose 6% in 2024, crossing 50,000 units annually for the first time.

Commenting on the findings, K. Ramakrishnan, Managing Director- South Asia, Worldpanel by Numerator, said, "Premiumisation in India is no longer restricted to metros or high-income households. Rural consumers are becoming aspirational, local disruptors are redefining what ‘premium’ means and even the most affluent households are rethinking priorities. The future will be about delivering value-led premium experiences through the right packs, right attributes and right channels. For brands, this is both a challenge and a golden opportunity."

The reportsuggests that premium is no longer a niche; it is a mass aspiration cutting across geographies, demographics and channels. The brands that succeed will be those that blend aspiration with accessibility and innovation with deep cultural resonance.