The Reality Check India's Consumer Economy Needed

If the financial year 2023-24 (FY24) was defined by optimism, recovery, and growth narratives, FY25 brought a necessary pause. Consumption slowed across several categories, especially discretionary ones. Premiumization began to lose momentum, cost structures tightened, and consumer behaviour became more uneven and harder to predict. The lesson from FY25 is that premiumization is not a straight line. It behaves more like a curve, rising when benefits are clearly articulated and pulling back when price value equations feel stretched.

For FY26, winning brands will rethink premiumization as episodic and contextual, supported by sharper benefit communication and more flexible pack and price ladders. Value first does not mean cheap, it means justifiable. Mid-premium fashion, gourmet food and beverage, white goods, and health supplements are among the segments where this recalibration is already underway. Direct-to-consumer (D2C) brands felt the pressure most