August 12, 2025

India remains a shining star for global consumer companies, but guess what? The urban markets are a bit moody this June quarter! While rural areas still show love, cities are not spending as much. Why? Softer consumer confidence and job worries are playing spoilsport, especially with IT layoffs casting a shadow on the middle class. Early rains made summer sales gloomy for beverage giants like Coca-Cola and PepsiCo. Coca-Cola’s unit case volume dropped by 1%, hit hard by India’s brief border tension with Pakistan, and declines in Mexico and Thailand. PepsiCo’s drink sales in India also slipped, though its snack business danced well. Mondelez International, the magic behind Cadbury chocolates, is singing a different tune. Chairman and CEO Dirk Van De Put said that even though emerging markets like India, Brazil, and Mexico have consumers "worried" about money and jobs, Mondelez grew its market share in India this quarter. He added, "Consumer confidence is softer in these markets... but emerging markets continue to be an attractive growth engine for us." On the other hand, Colgate-Palmolive hit a tough patch in the urban class trade. CEO Noel Wallace admitted, "We’re not pleased really with the performance we had in India, but we feel good about where we’re headed in the back half (later part of the year)." To fight back, they are relaunching the Colgate Total range with options at the ₹10 price point and some swanky premium products set for late 2023 and 2026. Urban consumption has been sluggish for several quarters. Tax benefits, lower food prices, and falling interest rates have added some cash to consumers' pockets, but city markets still lag behind rural areas. Job doubts and IT layoffs make the city spending scene tricky. Procter & Gamble’s emerging markets are a mixed bag too. Turkey boasts a strong 17% growth, India grows at 5%, but the Middle East struggles. So, the big question — can India’s urban markets bounce back soon? Global giants are juggling challenges, but innovation and smart strategies might just bring the sparkle back!

Read More at Economictimes →

Tags: India consumer market, Urban consumption, Mondelez india, Colgate-palmolive india, Coca-cola india, Pepsico india,