India’s fast-moving consumer goods (FMCG) sector is undergoing rapid and region-specific transformation, with Delhi emerging as the national capital of FMCG consumption, both in spending and volume. According to Kantar’s latest FMCG Pulse report, released on June 18, 2025, West Delhi leads the country in average household FMCG expenditure, while South Delhi tops in overall quantity purchased, offering a revealing look into India’s consumer psyche across urban geographies.

West Delhi: India’s FMCG Spending Powerhouse

Households in West Delhi, particularly across areas such as Tilak Nagar, Janakpuri, Sagarpur, and Vikaspuri, are setting new benchmarks in FMCG purchasing behavior. According to the report, residents here spend an average of ₹39,325 (US$ 456) annually on FMCG products, which is more than double the national average.

This high spending reflects both affluence and taste-centric lifestyle preferences. West Delhi homes allocate:

• ₹1,700 (US$ 19) per year on salty snacks, around 30% higher than the city average.

• Considerable amounts on sauces, ketchup, spices, and premium basmati rice, signifying a palate-driven consumption culture.

This shows that consumers in this part of Delhi prioritize flavour, convenience, and premium options, making it a lucrative zone for brands targeting taste-enhanced and value-added FMCG products.

South Delhi: Volume Leader in FMCG Consumption

While West Delhi may be the biggest spender, South Delhi leads the country in bulk FMCG consumption. Residents in neighborhoods such as Okhla, Kalkaji, Lajpat Nagar, and Bhogal purchase around 240 kg of FMCG goods annually, which is double the national average.

Key consumption patterns include:

• 45 litres of cooking oil per year per household.

• 17 kg of salt annually, underlining regular bulk purchases.

• 20 litres of bottled soft drinks, 30% above Delhi’s citywide average.

These figures suggest a combination of larger family sizes, higher consumption habits, and possibly frequent at-home meal preparations. The volume-heavy consumption pattern reflects a demand for larger pack sizes, cost-effective bundles, and reliable household essentials.

Bengaluru: Premiumisation Capital of India

Bengaluru, often regarded as India’s tech and innovation hub, stands apart in this study for its premiumisation trend. Residents here spend an average of ₹211 (US$ 2.44) per kilogram on FMCG products—the highest unit price in the country.

This spending behavior indicates a shift towards higher-quality goods, organic alternatives, and health-conscious choices, which are prevalent among the city's urban professional and expat-heavy population. It also signals a growth opportunity for premium FMCG brands, including imported goods, health supplements, artisanal snacks, and sustainably packaged products.

Mumbai: Frequent Shopping, Smaller Basket Size

The Greater Dharavi–Santacruz belt in Mumbai features India’s highest FMCG shopping frequency, with households making 233 shopping trips annually, averaging one every 37 hours. However, each trip averages a spend of just ₹93 (US$ 1.03)—the lowest in India’s metro areas.

This trend is typical of high-density urban slums and working-class areas, where people make frequent, low-value purchases, driven by:

• Limited storage space, reducing bulk buying.

• Cash flow constraints, leading to smaller, need-based purchases.

• Proximity to local kirana shops, encouraging daily or alternate-day buying habits.

Such insights are crucial for brands optimizing distribution, unit pack size, and pricing strategies for urban lower-income areas.

Dabur India’s View: Delhi's Mature FMCG Market

Mr. Rehan Hasan, Head of Sales at Dabur India, commented on the report findings, stating that Delhi’s preference for larger pack sizes is a sign of higher affluence and consumer maturity. This preference is visible across multiple FMCG categories, including personal care, packaged food, and beverages.

He noted that such pack size selection reflects:

• Confidence in brand trustworthiness.

• Financial flexibility for upfront bulk purchasing.

• A tendency to stock up for convenience and price efficiency.

This behavior encourages economies of scale in manufacturing and logistics, benefiting both consumers and producers.

Regional Diversification: FMCG Strategy Insights

Kantar’s micro-level analysis provides FMCG brands with region-specific strategy cues. These include:

1. West Delhi – Focus on flavour-rich products, combo offers, and multi-use cooking ingredients.

2. South Delhi – Offer family-sized packages, subscription models, and affordable bundling.

3. Bengaluru – Invest in premium positioning, organic product lines, and lifestyle-based branding.

4. Mumbai – Emphasize small SKU sizes, frequent-replenishment cycles, and value pricing.

Such segmentation enables more targeted marketing, SKU optimization, and regional supply chain agility.

Evolving FMCG Landscape: Opportunities & Trends

The overall findings from Kantar’s FMCG Pulse 2025 reflect the increasing sophistication of Indian consumers, as urban lifestyles, affluence, and product exposure continue to rise. Some key emerging trends include:

• Premiumisation beyond Tier-1 cities, with even Tier-2 and Tier-3 consumers opting for health, organic, and sustainable products.

• Rise of D2C brands in metros, fueled by e-commerce platforms, particularly in segments like beauty, health, and baby care.

• Private label growth among major retailers who are tailoring regional offerings based on local consumption analytics.

• Health-centric and convenience-based innovation as consumers balance busy schedules with wellness priorities.

As India’s FMCG market grows towards a projected US$ 220 billion by 2028, understanding regional behavior patterns will be critical for supply chain planning, new product development, and digital engagement strategies.

Conclusion

With West Delhi leading in FMCG spending, South Delhi dominating in volume, and cities like Bengaluru and Mumbai showing opposite ends of the spectrum in premiumisation and frequency, India’s FMCG landscape is as diverse as its population.

These evolving dynamics offer immense opportunities for tailored strategies, both for legacy players and emerging consumer brands. By decoding micro-level insights such as those from Kantar’s Pulse study, the industry can usher in a hyper-local yet scalable era of FMCG growth—efficient, inclusive, and consumer-first.

The Upcoming IPOs in this week and coming weeks are Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel, Mayasheel Ventures.

The Current active IPO are  ArisInfra Solutions, Influx Healthtech, Eppeltone Engineers, Patil Automation, Samay Projects Services.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.