InfoSAWIT, MUMBAI – India is emerging as one of Unilever’s biggest growth engines in emerging markets over the next five years, supported by its vast population, rising incomes and rapidly changing consumer habits.

Unilever Chief Executive Officer Fernando Fernandez said India has become a “blueprint” for the company’s growth strategy across emerging markets, reflecting the depth of its understanding of Indian consumers down to the smallest local areas.

“Many companies are discovering where India is on the map. We know the map of every postcode in India,” Fernandez said, as reported by InfoSAWIT from India Times, Sunday (Sept. 13, 2026).

Fernandez described India as having the strongest potential for exponential growth in the fast-moving consumer goods (FMCG) sector over the next five years. The country is also Unilever’s largest emerging-market business.

Overall, emerging markets account for around 62 percent of Unilever’s revenue. Fernandez said the long-term consumption outlook in these markets remains stronger than in developed economies.

Population growth, urbanisation, rising prosperity and increasing female participation in the workforce are among the key factors supporting that outlook.

India and US Become Acquisition Priorities

India and the United States have consequently become Unilever’s two priority markets for acquisitions, receiving the company’s full annual acquisition budget of between US$1.5 billion and US$2 billion.

The strategy goes beyond simply increasing market share. Unilever aims to build premium brands in both countries that can eventually be scaled globally.

In India, premiumisation can begin with relatively small changes in consumer behaviour. Fernandez cited the hair-care category, where consumers may shift from a one-rupee sachet to a two-rupee product.

He said around 5 percent of India’s population, or approximately 75 million people, has per-capita income comparable to France. This segment represents a significant opportunity for the beauty market.

Fernandez also sees potential to introduce some of Unilever’s established US brand portfolio into India at the right time.

Consumer Shifts Reshape India’s FMCG Market

Hindustan Unilever Managing Director Priya Nair said India’s consumer market is undergoing five structural changes: the growing Gen Z population, rising female workforce participation, accelerating digitalisation, improvements in roads and infrastructure, and expanding electrification and access to piped water.

The growth opportunity remains substantial, with India’s per-capita FMCG consumption still at around US$63.

Around 70 percent of India’s population lives in rural areas and tier-four locations. Another 20 percent lives in smaller cities, while 10 percent resides in larger urban centres.

Nair said smaller cities are growing at roughly twice the rate of the average Indian city.

India is also home to around 377 million Gen Z consumers, while female workforce participation has increased from approximately 25 percent to 40 percent.

These demographic and social changes are beginning to reshape consumption patterns. HUL research indicates that when a village becomes connected to a major city, the company’s business growth can increase by around 30 percent.

Digitalisation and Quick Commerce Open New Channels

HUL is also applying its detailed understanding of local consumers to its marketing strategy. The company now works with around 30,000 creators across India.

Artificial intelligence is being used to increase content production while improving media effectiveness. Nair said the company is also working to make brand communication younger and more relevant to today’s consumers.

A similar approach is being applied to distribution. General trade remains the company’s main channel, but specialist stores, modern trade and quick commerce are creating additional routes to consumers.

Quick commerce, in particular, is said to deliver better margins than both modern trade and general trade.

However, growth opportunities continue to face cost pressures. Inflation remains a challenge, particularly when oil prices reach US$100 a barrel and input costs rise.

Nair said HUL has previously navigated both inflationary and deflationary cycles. The company relies on cost-saving programmes and a broad portfolio spanning different price points to respond to changing consumer behaviour, including shifts toward lower-priced products or premium segments.

With rising consumption, demographic change, digitalisation and expanding distribution networks, India is becoming more than a major market for Unilever. It is increasingly serving as a strategic laboratory for growth models that could eventually be applied across other emerging markets. (T2)