The global uncertainty triggered by the West Asia crisis and unrest across the world appears to be weighing on Indian consumers, with demand for discretionary categories such as home and personal care taking a hit in January and February, data from Bizom shared with FE shows.
Spending on food, on the other hand, has grown during the same period, pointing to a tendency among consumers to restrict spending to essentials. Bizom, a business intelligence platform that tracks retail sales across FMCG categories, reports only value growth and not volume growth.
War in the West Asia
Though the war in the West Asia began on February 28, geopolitical tensions had been building since the capture of Venezuelan president Nicholas Maduro in early January. The cautious sentiment, Bizom says, is expected to intensify as the West Asia conflict drags into March.
Overall FMCG value growth slowed to 5.7% and 5.5% in January and February, respectively, compared with 9.5% in December 2025, when demand received a boost from GST cuts and a normalisation of inventory across trade channels.
Value growth in both urban and rural markets was also muted in January and February compared with December, when demand had picked up in these regions. However, the slowdown in urban markets has been sharper, Bizom said, amid heightened uncertainty in cities.
Rural demand
Rural demand, meanwhile, has remained relatively stronger, supported by government spending programmes. “The uncertainty in urban areas has been higher on account of job loss, trade and tariff-related issues as well as geopolitical tensions that is impacting sentiment.
In such as a scenario, where consumers are cautious, the focus will remain on essential categories, while non-essential spending will be muted. This trend will be likely visible in March too, as the West Asia conflict drags on,” Harshit Bora, analytics head, Bizom, said.
Urban FMCG value growth stood at 2.2% and 3.9% in January and February, respectively, compared with 6.5% in December. Rural growth came in at 7.7% and 6.5% during the two months under review versus 11.3% in December, according to Bizom.
FMCG value growth in home care declined to 3.3% in January and 3% in February, while personal care growth stood at 3.6% and 4.3% during the same period.
In contrast, dairy products and packaged foods registered an upward trend in value growth. Dairy products recorded growth of 7.9% in January and 11.7% in February, while packaged foods posted value growth of 5% and 12.6%, respectively, Bizom said.
Spending on beverages also remained strong through January and February, growing 10% and 10.1%, respectively, partly due to heat waves that set in early this year.
Spending on chocolates and confectionery slowed to 6.4% in January and 4.5% in February, compared with 10.7% growth in December. Branded commodities, which recorded value growth of 17.3% in December and 10.7% in January, fell sharply to 4% in February.