Why Global Consumer Brands Are Turning to India for Their Next Decade of Growth

India is increasingly becoming a strategic growth market for global consumer companies.

At the Barclays Global Consumer Staples Conference in September 2026, executives from companies including L’Oréal, Nestlé, Mondelez, Colgate-Palmolive, Reckitt, Yum Brands, Unilever and others highlighted India's potential as China slows and mature markets offer less room for incremental growth.

The attraction is not simply India's population.

It is the combination of rising incomes, relatively low per-capita consumption in many categories, expanding retail distribution, premiumisation and the continued development of organised and digital commerce.

For international companies, the implication is significant:

India is increasingly moving from a market that global brands should consider to one that global brands may need to prioritise.

Key Takeaways

• Major global consumer companies are increasingly identifying India as a long-term growth opportunity.
• India's relatively low per-capita consumption leaves room for category expansion.
• Rising incomes are creating opportunities for premium products.
• Expanding retail and e-commerce networks are increasing distribution potential.
• Mondelez currently reaches around 3 million of India's estimated 9–10 million stores, illustrating the scale of the distribution opportunity.
• L’Oréal has reported 17% growth in India.
• India's organised FMCG sector is expected to grow 8–10% in revenue in FY2027.
• Global companies are increasingly viewing India as a strategic growth engine rather than simply another emerging market.

India Is Becoming a Growth Priority

For years, international consumer companies have spoken about India as a market with enormous long-term potential.

The language is now changing.

India is increasingly being discussed not simply as an emerging market, but as a potential growth engine for global consumer businesses.

That shift is happening at a time when the world's largest consumer companies are facing a very different environment elsewhere.

China's growth has moderated.

Developed markets are mature.

And in many categories, increasing consumption becomes progressively harder once consumers are already using the product frequently.

India presents a different equation.

There is still significant room to grow.

The Opportunity Is Not Just India's Population

It is tempting to explain India's consumer opportunity using one statistic:

1.4 billion people.

But population alone does not create a consumer opportunity.

What matters is what those consumers buy, how frequently they buy it, where they buy it and how much they are willing to spend.

India scores strongly across several of these dimensions.

Income levels are rising.

Urbanisation is continuing.

Organised retail is expanding.

E-commerce and quick commerce are changing distribution.

And millions of consumers are moving into categories or price segments that were previously less accessible.

This creates multiple ways for international companies to grow.

There Is Still Room to Create Consumption

One of the most interesting observations from the recent consumer-industry discussions is that India's opportunity is partly about increasing consumption itself.

In mature markets, a company may have to fight for market share because consumers already purchase a category frequently.

In India, the opportunity can be different.

A company can potentially:

• Bring new consumers into a category
• Increase consumption frequency
• Introduce new product categories
• Encourage premiumisation
• Expand distribution
• Reach previously underserved cities
• Build entirely new consumption habits

That creates a much larger strategic runway.

L’Oréal Shows What Premiumisation Can Look Like

Beauty is one example.

L’Oréal has reported 17% growth in India, while its Southeast Asian region, including India, has seen particularly strong growth in dermatological beauty and professional products.

E-commerce is also expanding rapidly.

The implication is important.

India is not simply a market where global brands can sell cheaper versions of products designed for developed markets.

There is increasing room for premium products designed around the aspirations and preferences of India's emerging consumer base.

Mondelez Shows the Distribution Opportunity

The opportunity becomes even clearer when looking at distribution.

Mondelez currently supplies around 3 million of India's estimated 9–10 million stores.

That means the company has significant room to expand its physical distribution even before considering entirely new products or consumption occasions.

It is also investing in premiumisation and new channels such as quick commerce.

One of its newer biscuit lines reportedly sold out within six months, leading to the addition of another production line.

This illustrates something important about India.

The opportunity is not simply:

“Find Indian consumers.”

It is:

“Reach the right Indian consumers in the right places with the right proposition.”

India's Retail Landscape Is Changing

India's consumer ecosystem is becoming more complex.

Traditional neighbourhood stores remain hugely important.

But alongside them are:

• Modern retail
• E-commerce
• Quick commerce
• Specialist retailers
• Direct-to-consumer brands
• Digital marketplaces

For global companies, this creates both opportunity and complexity.

A product that works through supermarkets may require a completely different strategy for quick commerce.

A premium product may need a different positioning from a mass-market offering.

And a national launch may not make sense when consumer behaviour varies considerably between regions.

India Is Not One Consumer Market

This is one of the most important points for international companies.

India is a single country.

But commercially, it contains many different markets.

Mumbai is not Jaipur.

Delhi is not Kochi.

Bengaluru is not Lucknow.

Consumer preferences, income levels, retail structures, languages and competitive environments can vary substantially.

This means that international companies need to think carefully about where they enter first.

A successful India strategy may begin with a particular city, consumer segment or distribution channel before expanding nationally.

The Next Opportunity May Be Outside the Biggest Cities

India's consumer story is also moving beyond its largest metros.

As organised retail, e-commerce and logistics infrastructure expand, more international brands can reach consumers in Tier 2 and Tier 3 cities.

This is particularly important because companies that establish distribution early can potentially build strong positions before categories become fully saturated.

But reaching these markets requires more than simply shipping products.

Companies need to understand:

• Regional demand
• Local pricing
• Distribution economics
• Retail relationships
• Regional competition
• Customer acquisition
• Local marketing

That is where local market knowledge becomes valuable.

China Is Changing the Global Growth Equation

The growing focus on India cannot be separated from what is happening elsewhere.

For years, China represented one of the world's most important growth opportunities for global consumer companies.

As China's growth slows, companies need to reconsider where the next major pools of incremental demand will come from.

India stands out because it combines scale with relatively low category penetration in several consumer segments.

That does not mean India automatically replaces China.

It means the strategic importance of India is increasing.

And global companies are beginning to allocate more attention accordingly.

What Does This Mean for International Companies?

The opportunity is clear.

But entering India successfully requires more than identifying demand.

A company needs to understand how the market actually works.

That means asking:

Who are the right distributors?

Which retailers matter?

Who are the potential strategic partners?

Which cities should we enter first?

Who understands our target consumers?

Which local companies already have distribution?

Which relationships can accelerate our expansion?

The answers can determine whether a company spends years building a market or finds a faster route to meaningful commercial traction.

The Importance of Local Relationships

As more global brands enter India, relationships become increasingly valuable.

A local partner can potentially provide:

• Distribution
• Market intelligence
• Regulatory knowledge
• Local hiring
• Customer introductions
• Regional expertise
• Operational support

The right relationship can help an international company move from market research to market execution.

And that distinction matters.

Knowing that India has 1.4 billion people is research.

Knowing which 100 people can help you build your business in India is market access.

The Global Brand + Local Market Equation

The most effective India strategies may increasingly combine two things.

Global capability.

Local understanding.

The global company brings:

• Brand
• Technology
• Capital
• Product development
• International experience

The local ecosystem brings:

• Relationships
• Distribution
• Customer knowledge
• Regional understanding
• Market credibility
• Execution capability

Neither side necessarily needs to replace the other.

The opportunity lies in combining them.

India Is Becoming a Strategic Market, Not Just a Large Market

That is perhaps the biggest takeaway from the latest global consumer discussions.

India is no longer simply attractive because it is large.

It is attractive because there are still multiple layers of growth available.

More consumers.

More consumption.

More premiumisation.

More distribution.

More categories.

More cities.

More digital commerce.

And more sophisticated consumers.

That combination is increasingly difficult for global consumer companies to ignore.

Frequently Asked Questions

Why are global consumer companies focusing more on India?

India combines a large population, rising incomes, expanding retail infrastructure and relatively low consumption levels in several categories. This gives consumer companies multiple avenues for long-term growth.

Which global companies are highlighting India's potential?

Executives from companies including L’Oréal, Nestlé, Mondelez, Colgate-Palmolive, Reckitt, Unilever and Yum Brands have highlighted India's growth opportunity.

Is India replacing China for global consumer companies?

Not necessarily. China remains a major market. However, as Chinese growth moderates, India is becoming an increasingly important source of potential incremental growth.

What is driving India's consumer opportunity?

Key drivers include rising incomes, premiumisation, wider distribution, e-commerce, quick commerce, urbanisation and relatively low category penetration.

Why is distribution important in India?

India has an enormous and fragmented retail landscape. Even established multinational companies can have significant room to expand their distribution across the country's millions of stores.

What should international consumer companies do before entering India?

They should understand their target consumers, identify the right cities and channels, evaluate potential partners and distributors, and build relationships with the stakeholders who can accelerate market access.

Final Thoughts

The interesting story about India today is not simply that global brands want to enter.

It is that global brands increasingly see India as one of the places where their next decade of growth could be built.

That changes the nature of the opportunity.

India is becoming more competitive.

More sophisticated.

And more strategically important.

For an international company, the question should therefore move beyond:

“Is India a market for us?”

It should become:

𝗛𝗼𝘄 𝗱𝗼 𝘄𝗲 𝗯𝘂𝗶𝗹𝗱 𝗮 𝗹𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻 𝗶𝗻 𝗜𝗻𝗱𝗶𝗮?

And perhaps the first practical question is:

𝗪𝗵𝗼 𝘀𝗵𝗼𝘂𝗹𝗱 𝘄𝗲 𝗸𝗻𝗼𝘄?

About Kalantic

Kalantic helps international companies build customers, partners and business in India.

From market intelligence and customer acquisition to partner development and ongoing business relationships, Kalantic helps companies navigate the human and commercial side of entering and growing in India.

Because markets are built through conversations, relationships and persistence.

Sources

• The Economic Times — “As China slows, global FMCG and consumer giants from L'Oreal to Nestle bet big on India”, September 12, 2026
• Business Standard — “India emerges as key long-term growth market for global consumer giants”
• Financial Express — “Top global consumer firms sharpen India focus for growth”