E-commerce is driving FMCG volume growth in India: NIQ

Both legacy companies and startups in India are leveraging online platforms to drive faster volume growth than traditional channels, according to a new report by global consumer intelligence company NIQ (formerly NielsenIQ).

A convergence is emerging, with incumbents adopting startup tactics and digital-first brands scaling faster than traditional models allow, showed the report Who’s Really Winning FMCG Volume Growth in 2026?

“E-commerce has become a testing and a scaling ground for innovations where large FMCG (fast-moving consumer goods) players such as L'Oreal, Hindustan Unilever, Marico and ITC, are using player acquisition and premium extension to accelerate growth,” said Pooja Kamthe, senior research manager at NielsenIQ, at the launch of the report.

The shift is taking shape against a stark backdrop. Of more than 64,000 FMCG brands in India, only 129 qualify as “volume winners”, defined by NIQ as those delivering over 10% volume growth MAT '25. MAT ’25 refers to the Moving Annual Total for the year 2025.

In addition to volume growth, a company could qualify as a volume winner only if it achieved 0.5% market share growth and had at least ₹10 crore in sales in 2025.

The report noted that legacy players have achieved high-volume growth by acquiring fast-growing startup brands. For example, HUL’s digital-first brands, such as Oziva and Minimalist, achieved a volume growth of 177% in MAT’25.

ITC showed a similar volume growth trend after acquiring stakes in health food brand Yoga Bar and frozen food brand Prasuma (102%). Similarly, Marico saw growth after acquiring stakes in popcorn brand 4700BC and protein powder brand Cosmix (86%).

These deals are less about adjacency and more about importing digitally native capabilities—faster innovation cycles, sharper consumer targeting and premium positioning. Other major volume winners in MAT ‘25, according to the report, include the home-cleaning brand Beco (609%) and perfume brand Bellavita (236%).

Online first

“Online first launches are gaining meaningful volume share much faster than the offline channels, which are driven by instant discovery, search visibility and quicker consumer trials," Kamthe said.

The online-first method has helped companies easily familiarize customers with their brands. For example, Cipla Health sells its skin- and hair-care products only online because it helps maintain a personal conversation with customers, chief executive Shivam Puri said in a February interaction with Mint. NIQ noted that Cipla Health’s skincare brand Asta Berry achieved a 38% volume growth in MAT’25 with its online-only presence.

Beyond e-commerce dependency, affordable premiumization, local flavours/trends and health-focussed branding are ways to ensure volume growth, according to Rutuja Vaze, director, insights and thought leadership at NIQ.