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FMCG brands keep ad spending steady in Q2 FY2025

FMCG brands boost Q2 ad spending despite cost pressures and urban demand slowdown; Colgate-Palmolive sees sharpest growth, while HUL retains top spender spot

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New Delhi: Amid rising costs and a dip in urban demand, FMCG brands maintained strong advertising and promotional spending in Q2 of the current fiscal. 

While HUL and GCPL scaled back their ad budgets, companies like Dabur, Marico, P&G Hygiene, Gillette, Colgate-Palmolive, and Patanjali increased ad spend this quarter.

Despite its reduction, HUL remained the top ad spender in Q2. 

Colgate-Palmolive led in growth, with ad spending surging 17.8% year-over-year, 21.9% quarter-over-quarter, and 14% over the half-year. 

Quarterly figures show HUL and Dabur’s ad spends declined, while Marico, GCPL, Colgate-Palmolive, P&G Hygiene, and Gillette increased their adex.

In a half-yearly comparison, FMCG giants continued to double down on advertising, with overall ad spending up from the previous year’s first half.

Historically, approximately one-third of the annual spends in the Indian advertising industry has been attributed to the FMCG category. As per GroupM, Madison and dentsu Indian adex predictions for 2024, FMCG will continue to be the growth driver for Indian ad spends.

According to the latest AdEx report from TAM, FMCG advertising volumes on television experienced a 6% decline in the first half of 2024 compared to the same period in 2023. In the print medium, FMCG ad space also declined by 6% year-on-year. On the radio front, FMCG ad volumes rose slightly by 1% during H1 2024 compared to H1 2023. Digital advertising for the FMCG sector surged by 7% in H1 2024 compared to the previous year.

FMCG brands’ adex in Q2 FY2025 in comparison to Q2 FY2024

 

Brand

Q2 FY2025

Q2 FY2024

Percentage change

HUL

Rs 1,501 crore

Rs 1,742 crore

13.8% drop

Marico

Rs 290 crore

Rs 268 crore

8.2% rise

GCPL

Rs 363.95 crore

Rs 365.94 crore

0.54% decline

Dabur

Rs 225.63 crore

Rs 216.53 crore

4.2% rise

Colgate-Palmolive

Rs 242.72 crore

Rs 205.99 crore

17.8% rise

 

FMCG brands’ adex in Q2 FY2025 in comparison to Q1 FY2025

 

Brand

Q2 FY2025

Q1 FY2025

Percentage change

HUL

Rs 1,501 crore

Rs 1,681 crore

10.7% drop

Marico

Rs 290 crore

Rs 240 crore

20.8% rise

GCPL

Rs 363.95 crore

Rs 330.82 crore

10.01% rise

Dabur

Rs 225.63 crore

Rs 235.89 crore

4.25% drop

Colgate-Palmolive

Rs 242.72 crore

Rs 199.07 crore

21.9% rise

 

FMCG adex comparison on a half-yearly basis

 

Brand

H1 FY2025

H1 FY2024

Percentage change

HUL

Rs 3,182 crore

Rs 3,247 crore

2% drop

Marico

Rs 530 crore

Rs 480 crore

10% rise

GCPL

Rs 694.77 crore

Rs 686.33 crore

1.2% rise

Dabur

Rs 461.52 crore

Rs 420.87 crore

9.6% rise

Colgate-Palmolive

Rs 441.79 crore

Rs 420.87 crore

14.06% rise

 

Patanjali Foods has stepped up advertising and sales promotion substantially to over Rs 130 crore in the second quarter of fiscal year 2025.

Grooming products maker Gillette India reported a rise of 11.3% in marketing and sales promotions expenses in the September quarter to Rs 113.44 crore, versus Rs 101.89 crore it spent in the corresponding quarter of the previous year.

In the last quarter, the company spent Rs 114.25 crore on marketing and sales promotions. 

The previous year ended on June 30, 2024, the company’s marketing and sales promotions expenses stood at Rs 358.90 crore.

Procter & Gamble Hygiene and Health Care reported a rise of 13.5% in advertisement and sales promotion expenses in the September quarter to Rs 172.94 crore, versus Rs 152.42 crore it spent in the corresponding quarter of the previous year.

In the last quarter, the company spent Rs 153.66 crore on advertisement and sales promotions. 

 

The previous year ended on June 30, 2024, the company’s marketing and sales promotions expenses stood at Rs 567.76 crore. 

Leading FMCG firms reported a nearly two-fold increase in the share of quick commerce within their total e-commerce sales, and this surge is anticipated to continue, according to a joint report by Deloitte and industry body FICCI.

Quick Commerce, also known as hyperlocal delivery, is now reaching around 35% of online sales and has become a preferred channel for urban consumers.

"About 18% of consumers prefer purchasing food and beverage items from Q-commerce channels. The Q-commerce segment has grown by 230% from 2021 to 2023," said the report titled 'SPURring growth in FMCG, retail and e-commerce sectors in India'.

 

adex Marico ad spend HUL FMCG Dabur
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