From The Economic Times · Ratna Bhushan · · 1m 10s
FMCG Brands Boost Ads to Combat Inflation and Scrutiny
FMCG brands ramp up ad spending amid inflation and regulatory pressures to retain consumer trust.
In brief
FMCG brands ramp up ad spending amid inflation and regulatory pressures to retain consumer trust. Packaged goods companies increased ad spends by 46% year-on-year to counter rising food inflation and FSSAI regulatory notices. Originally reported by The Economic Times.
FMCG Brands Increase Ad Spending
Multiple packaged goods makers raised advertising expenditures during July-September to maintain consumer demand amid rising inflation.
Nestle India Boosts Ads 46% YoY
Nestle India increased ad spends by 46% year-on-year in the September quarter, exceeding its revenue growth rate of 20.5%.
Regulatory Crackdowns Drive Ad Spends
FSSAI sent over 150 notices to food and beverage companies for misleading claims or labelling violations, prompting brands to reinforce consumer trust.
Other Brands Follow Suit
PepsiCo, Colgate, Parle, Dabur, Hindustan Unilever, ITC, Britannia, and Coca-Cola plan to sustain ad spending momentum through the next two quarters.
Ad Spending Focus on Trust
Brands are directing advertising around 'safety and trust' over taste to counter regulatory scrutiny and rising food inflation.
Festive Ad Spending Surges
Influencer-led festive advertising is projected to reach ₹900 crore in 2026, a 29% increase from the previous year.
What to remember
Packaged goods companies increased ad spends by 46% year-on-year to counter rising food inflation and FSSAI regulatory notices.
