India posts 13.7% FMCG growth amid Asia-Pacific’s rise to $36 trillion market

New Delhi: India’s consumer momentum is gaining pace as Asia-Pacific is set to overtake North America as the largest consumer market by 2035, according to a joint report by Bain & Company and NielsenIQ (NIQ). Private consumption in the region is expected to grow at 7% CAGR, reaching $36 trillion by the end of the next decade, as global private consumption rises from roughly $65 trillion in 2025 to $110–$120 trillion by 2035.

This shift highlights evolving patterns in how and where consumers across Asia-Pacific spend, setting the stage for new growth trends in 2026 and beyond. In the annual total ending June 2025, fast-moving consumer goods (FMCG) value in Asia-Pacific grew 4%, driven by 2.8% volume growth and 1.2% price increases, presenting a healthier balance than the largely price-driven growth seen in North America and Western Europe.

The region remains central to global consumer packaged goods (CPG) strategies, though performance varies significantly across markets. India shows particularly strong momentum, with FMCG value growth of 7.2% in 2024 accelerating to 13.7% in the first half of 2025. By comparison, Southeast Asia’s growth eased to 1.8%, China’s FMCG growth rose from 2.8% to 4.7% in H1 2025 led by online channels, and South Korea continues to benefit from e-commerce expansion.

Ravi Swarup, Partner and Consumer Products Practice Head at Bain & Company in India, said, “We are seeing early signs of consumption revival across FMCG categories. This is not only true for categories affected by GST reduction but also across a wider set of consumption segments benefiting from income tax rationalisation, easing of food and commodity inflation, and overall improving consumer sentiment. While consumption revival is underway, the bigger opportunities lie in increasing penetration and consumption frequency, alongside continued premiumisation trends.”

He added, “Digitisation across demand generation, fulfilment, and supply chain efficiency will be key. FMCG brands, both incumbents and insurgents, must drive innovation to deliver higher value to consumers. Affordability remains important, so ensuring availability and accessibility is critical to volume growth, and sustaining category expansion will require balancing resources across multiple growth vectors. Investments in digital and AI capabilities, evolving talent models, and fast innovation will be essential for FMCGs to thrive in this evolving landscape.”

David Zehner, head of the APAC Consumer Products practice at Bain & Company, said: “Asia-Pacific is where the next decade of global consumption will be decided. The region’s opportunities, while vast, are uneven across markets, and companies need to understand local nuances while scaling to capture the full potential of APAC.”
Looking ahead to 2026, the report identifies six forces shaping the region’s consumer landscape. Shifting market dynamics call for diversified strategies as APAC no longer relies on a single growth engine. While China remains the largest contributor to GDP growth, India and parts of Southeast Asia are gaining economic significance, creating a multi-market reality requiring diversified approaches.

Diverging consumer preferences show that consumers are not uniformly trading down. Bain’s analysis highlights distinct pricing trends from premiumisation in India and Indonesia to polarisation in China emphasising the need for differentiated offerings.
Increasing channel complexity and AI reshape the consumer journey, with online remaining the central growth engine.

E-commerce accounts for about 40% of FMCG sales in China and South Korea, while emerging channels such as social commerce and quick commerce expand rapidly. A NIQ survey shows 39% of APAC consumers already use generative AI for online shopping, with an additional 40% open to adoption.

Rising local brands dominate most developing markets, except India, gaining share through speed, market agility, and closer alignment with local consumer needs. Scalable agility emerges as a differentiator, with successful CPGs replicating best practices across markets and sharing capabilities to improve efficiency and responsiveness.

AI is increasingly recognised as a game changer, integrated across innovation, marketing, sales, supply chains, and operations. Grounded in comprehensive consumer insights, AI augments decision-making rather than acting as a standalone tool.

Craig Houliston, Asia Pacific Regional Consulting and Insights Lead at NIQ, said, “In China, India, Indonesia and Thailand, where adoption is above the regional average, over 50% of consumers already use generative AI to assist with their online shopping. As APAC consumers increasingly seek convenience and affordability, generative AI will play a greater role in supporting their choices.”

Elle Yang, partner at Bain & Company, added, “The APAC region is complex. Consumer behaviours and channel dynamics are fragmenting faster than ever. Winning in this environment requires localised approaches, adapting quickly to market signals while building scalable models across borders.”