India Turning High Growth Market for Global Consumer Products MNCs: Report Evolutions in digital infrastructure, the channel landscape, and middle-class expansion have removed traditional barriers, making India a "friendly battleground for MNCs", the report noted

Consumer products multinational companies, which historically considered India a tough market, are now witnessing its substantial contribution to global volume growth. These multinational majors, ranging from soft drinks and spirits to savoury snacks, detergents, and consumer appliances, have emerged as number one or number two players in over 20 consumer product categories in India.

Evolutions in digital infrastructure, the channel landscape, and middle-class expansion have removed traditional barriers, making India a "friendly battleground for MNCs", the report titled 'LEAP to Win: A Playbook for Consumer Products Multinational Corporations in India' noted.

According to the new report, over the past five years, India's volume growth contribution outpaced its volume share by 2-8 times across several categories. In the consumer appliances sector, for instance, India's share of the global volume in 2024 was 5 per cent, but its share of global incremental volume growth between 2019-2024 was 44 per cent, 8.6 times higher than its total volume share.

In the apparel and footwear sector, its share of global volume was 8 per cent, 4.3 times higher than its global incremental volume growth marked at 34 per cent.

In the hot beverages market, India makes up just 6 per cent of the global volume, but contributes 24 per cent of the growth.

"Companies already investing in India are benefiting from accelerated growth, higher shareholder returns, and opportunities to shape globally relevant products," said Ravi Swarup, head of Bain's Consumer Products practice in India. "MNCs that have not entered the market must act now—or risk missing out on a vital growth engine and long-term strategic advantage," he added.

Over the past decade, India has become the third-largest contributor to consumer products growth among emerging markets, and it has significant headroom for expansion.

"Winning in India can be quite rewarding. For several consumer product leaders, India affiliates deliver disproportionate total shareholder returns, as much as 2–6 times that of their global parents. Their success in India is driven by outsized contributions to revenue growth compared to their parent companies. For those MNCs not in India, this is a missed opportunity," the study stated.

Experts noted that India's growing middle class and increase in disposable income were some of the reasons behind it becoming a "robust growth engine" for consumer products MNCs.

"India's real disposable income per capita has increased at a 6 per cent CAGR in the past three years. In the next five years, India's income per capita is expected to grow the fastest among the top five consumer products emerging markets, which also include China, Brazil, Mexico, and Russia," the study stated.

According to a Morgan Stanley research, a young population and urbanization should continue to drive consumption growth in India. "The population will also get richer, with the proportion of households earning over USD 8,000 a year likely increasing from 25 per cent in 2021 to over 50 per cent in 2031," the report had stated.

"Despite recent improvements, India remains a complex market," said Nikhil Ojha, head of Bain's Strategy practice in the Asia-Pacific region. "What we are seeing is a market where both legacy players and new entrants can win, but only if they rewire their approach to be truly India-centric," he added.