FMCG Majors To Raise Ad Spend As Margins Improve And Demand Picks Up

India’s fast-moving consumer goods (FMCG) sector is gearing up for a significant boost in advertising investments as companies look to strengthen brand visibility and capture growing demand. According to industry reports, FMCG majors including Dabur and Godrej plan to raise their ad spend by 10-15% until the June quarter of FY26.  

The decision comes on the back of improved operating margins, supported by easing commodity prices and stable inflation. With consumer demand showing signs of recovery, particularly in urban markets, companies are strategically channeling resources into advertising to maximize sales during the summer season and leverage upcoming sporting events that traditionally drive consumption.  

Industry analysts highlight that this increase in ad spend reflects renewed confidence in the sector after a turbulent 2025 marked by uneven demand and cost pressures. The move also signals a shift toward aggressive marketing strategies, with greater emphasis on digital platforms to reach younger and more diverse audiences.  

Key highlights from the announcement include 

• FMCG majors to raise ad spend by 10-15% until June quarter FY26  
• Companies like Dabur and Godrej leading the push in advertising investments  
• Improved margins driven by lower commodity costs and benign inflation  
• Focus on leveraging summer season and upcoming sporting events  
• Shift toward digital advertising to capture urban and younger consumers  

Experts emphasize that the increased advertising expenditure will not only strengthen brand positioning but also accelerate demand recovery across categories. With consumption trends expected to rise, FMCG companies are positioning themselves to capture market share in a competitive environment.  

Sources: Economic Times, Business Standard, Times of India