Premium brands currently account for 15% of FMCG volumes, across categories such as detergents, bar soaps, toothpaste, tea, edible oils, biscuits and skin creams. While premiumization slowed in 2024 due to rural softness, long-term demand remains strong, especially as Indian households (urban and rural alike) become more aspirational.

Key insights from the survey:

1. Rural momentum: Rural India’s contribution to premium FMCG volumes has grown sharply- from 30% in 2021 to 42% in 2025 for super-premium categories and over 50% for affordable premium.

2. Affluence reset: Super-premium consumers in metros (SEC A1) are shifting their spend from essentials like groceries and dairy to lifestyle-led categories such as housing, travel, luxury cars, smartphones and home décor.

3. Local disruptors win: Homegrown brands focusing on health, natural and functional attributes (e.g., cold-pressed oils, natural shampoos, herbal teas) are winning share in super-premium categories, often growing faster than established global brands. Examples include Burhani Liquid Dishwash in Madhya Pradesh, AVT Gold Cup Tea in Tamil Nadu and Meera Shikakai Shampoo in Karnataka and Odisha.

4. Right-sizing works: Small, affordable pack formats are driving penetration and trial without diluting premium experiences. Sensodyne (75g), Nabati wafers (30g) and Tresemme (6ml) are clear examples of how accessible packs fuel growth. Leading super-premium players like Dove, Malkist, Sensodyne and Taj Mahal Tea are also unlocking growth by offering smaller, more affordable packs- balancing accessibility with premium experience.

5. Channel shifts: Despite strong growth in e-commerce and quick commerce, premium FMCG remains underleveraged in fast-delivery channels, signalling untapped potential in Q-commerce for categories like toothpaste, skincare and packaged foods.

6. Beyond FMCG: Premiumization is not just an FMCG phenomenon. Sectors like luxury housing (sales above ₹3 crore up 80% in 2024), premium smartphones (8% YoY volume increase in Q2, 2025) and luxury cars (6% YoY growth in 2024 and crossing 50,000 units in annual sales for the first time) underscore a wider consumer shift toward elevated living.

Implications for brands:

To capture the next wave of premium growth, FMCG players must:

1. Be present in the super-premium space with curated offerings.

2. Reframe value, focusing on value per use rather than price per gram/ml.

3. Amplify accessibility through new-age channels like quick commerce and e-commerce.

4. Leverage the power of small, affordable packs to drive penetration and trial.

Commenting on the findings, K. Ramakrishnan, Managing Director- South Asia, Worldpanel by Numerator, said: “Premiumization in India is no longer restricted to metros or high-income households. Rural consumers are becoming aspirational, local disruptors are redefining what ‘premium’ means and even the most affluent households are rethinking priorities. The future will be about delivering value-led premium experiences through the right packs, right attributes and right channels. For brands, this is both a challenge and a golden opportunity.”

The report underscores that premium is no longer a niche- it is a mass aspiration cutting across geographies, demographics and channels. The brands that succeed will be those that blend aspiration with accessibility and innovation with deep cultural resonance.

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Additionally, Gulabs offers larger packs specifically designed for the HoReCa (Hotel, Restaurant, and Café) segment. The brand claims using real ingredients to impart authentic flavor, aroma, and texture to its products.

Initially, the products are available on the company’s website, www.gulabs.in, and will soon be available in physical stores and other online platforms.

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The newly raised capital will be primarily allocated to brand building and marketing initiatives. It will also focus on enhancing working capital, driving new product development, and hiring key leadership personnel for the next phase of growth.

Talking about the new investment, Ravi Kabra, CEO and Co-Founder, Skippi, said, “This funding is a big step for Skippi as we work to become a top FMCG brand in India. We are very thankful for the support from our investors, including our valued sharks. With this money, we will focus on building our brand, creating new products, and bringing in great talent to our leadership team.”

Skippi garnered investments from all six sharks—Aman Gupta, Ashneer Grover, Anupam Mittal, Namita Thapar, Vineeta Singh, and Piyush Bansal—during Shark Tank India Season 1. The jury collectively invested Rs 1.2 crore for an 18% equity stake. Since then, Skippi’s growth has been remarkable, with monthly revenues increasing 80 times from their initial figures of Rs 5-7 lakhs.

Commenting on the investment, Dr. Apoorva Ranjan Sharma, Co-founder, and Managing Director. Venture Catalysts, said, “Venture Catalysts invested in Skippi Ice Pops, capitalizing on the rapid growth of India’s frozen dessert sector, which is expected to reach USD 2.4 billion by 2027. Their strong brand presence and rapid growth make them an attractive investment opportunity. This strategic move aims to boost Skippi’s market presence and innovate within a booming industry driven by rising disposable incomes and changing consumer preferences.”

As Skippi continues to grow, it remains committed to its mission of bringing cheer with its diverse product range. The company aims to expand its presence further and positively impact the FMCG sector in India

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