Global consumer product companies remain bullish on India growth story amidst global headwinds
Global Consumer Product Companies Remain Bullish on India Growth Story Amidst Global Headwinds
Table of Contents
Market Overview
Despite facing global macro-economic challenges, including tariff uncertainties and consumption concerns, leading global consumer product companies continue to express unwavering confidence in India’s growth story. Major players such as Coca-Cola, Unilever, Reckitt, PepsiCo, and Costa Coffee maintain a bullish outlook for the Indian market, even as urban demand shows signs of sluggishness.
Key Market Indicators
The Indian consumer market continues to show resilience with government incentives, tax relief, and lower food and oil inflation creating favorable conditions for market development and core business growth.
Unilever’s Strong Confidence
During the Q1 earnings call, Srinivas Phatak, Acting Chief Financial Officer of Unilever, emphasized India’s position as “a very strong business” and “a consistent performer.” He highlighted the absence of new headwinds and the presence of potential tailwinds in the market.
Strategic Focus
“When we look at it in its totality, I think this is a market where we will be unblinking in our defence, and when we get our growth engine moving up, we know how to really make money here and how really to drive earnings ahead of growth,” Phatak stated, expressing confidence in both growth and margin profiles for India.
Coca-Cola’s Double-Digit Growth
Coca-Cola’s India business achieved double-digit volume growth in the March quarter, marking a strong start to the year. James Quincey, Chairman and CEO of The Coca-Cola Company, confirmed the company’s long-term thesis remains intact, despite acknowledging that growth may not always follow a straight line.
Reckitt’s Market Share Gains
British consumer products company Reckitt reported strong performance in India, particularly in its Dettol portfolio. Kris Licht, CEO of Reckitt, noted “some really strong volume growth” in emerging markets, with China and India leading in Germ Protection and Intimate Wellness spaces.
Market Resilience
“Now, of course, these economies may also not be immune to any shocks that could roll through the global economy. But we fully expect sustained strong volume growth in China and India and in other Emerging Markets as we go through this year,” Licht stated during the earnings call.
PepsiCo’s Positive Outlook
PepsiCo identified India as one of the key markets driving growth for its international business in the March quarter. The company expressed satisfaction with the market’s current position, indicating a positive outlook for future operations.
Costa Coffee’s Expansion Plans
Costa Coffee’s Global CEO, Philippe Schaillee, announced ambitious plans to make India one of its top five markets within the next five years. This strategic goal reflects the company’s long-term confidence in the Indian market’s potential.
Future Market Prospects
The collective optimism from these global consumer product giants underscores India’s continued appeal as a growth market. Despite global economic uncertainties, these companies are making strategic investments and maintaining their commitment to the Indian market, recognizing its long-term potential and resilience.
Market Confidence Indicators
- Strong government incentives and tax relief
- Lower food and oil inflation
- Consistent market performance
- Strategic long-term investments
- Positive volume growth trends
Published on May 1, 2025
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