The festive rush: How FMCG sector is driving Diwali purchases and demand
- IBEF
- October 21, 2025
India’s festive season has brought renewed energy to the fast-moving consumer goods (FMCG) sector, with strong sales reported across categories as consumers flock to stores and digital platforms ahead of Diwali. Lower Goods and Services Tax (GST) rates have further boosted spending, encouraging households to stock up on essentials, sweets, and gifts. Companies such as Parle Products have recorded a 15-20% surge in primary-level sales. In comparison, Adani Wilmar reported a 5% YoY volume increase in Q2 FY26. Demand for kitchen essentials, dairy items, and edible oils has also risen sharply, reflecting festive consumption trends across urban and rural India. Quick commerce and e-commerce platforms have emerged as key enablers, with FMCG orders driving over 85% growth in volumes during the first week of festive sales, particularly from tier-II and tier-III cities.
The GST overhaul implemented in September 2025 has been a key growth catalyst, simplifying slabs and reducing taxes on daily-use items such as soaps, shampoos, toothpaste, and dairy spreads. Industry stakeholders, including the All India Consumer Products Distributors Federation (AICPDF), expect the reforms to lift FMCG growth by 2-3% this season. Analysts anticipate the sector to recover from the slowdown seen in FY25, as lower inflation and cooling input costs improve consumption sentiment. With festive optimism driving both in-store and digital demand, the FMCG market is positioned for a sustained rebound in FY26, supported by value-driven buying patterns, improved rural spending, and policy-led tax relief.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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