India’s Fast-Moving Consumer Goods (FMCG) sector has shown a notable recovery, with consumption increasing by 4% in FY25, following a significant 22% decline in FY23. This resurgence indicates a sustained consumer focus on essential goods, even as discretionary spending on experiences like travel and entertainment continues to rise.
The CMS Consumption Report 2025, utilizing data from over 146,000 business points through the CMS Cash Index™, highlights several key trends:
- Consumer Durables: Average monthly spending surged by 72% in FY25, driven by a growing preference for home ownership and the need to furnish new homes, a significant jump from a 6% increase in FY24.
- Multi-Brand Outlets: Spending increased by 12% in FY25, rebounding from a 29% decline in FY24, attributed to a trend towards premiumization and the continued importance of physical retail spaces for high-value purchases.
- Cash-Led Consumption: States like Bihar, Himachal Pradesh, and Chhattisgarh emerged as new hotspots, with an average of ₹1.3 crore dispensed per ATM, indicating robust cash-based spending patterns.
This data underscores a dual-track consumption trend in India, where consumers are balancing essential purchases with experiential spending, reflecting a resilient and evolving consumer economy.