India’s fast-growing brands generate over $7.5 billion revenue in FY25: Report

New Delhi, June 24 (IANS) India’s fast-growing consumer brands collectively generated more than $7.5 billion in revenue in FY25 and have grown 3.75 times over five years, outpacing the market by 3.3 times, a report said on Wednesday.

The report from Bain & Company and DSG Consumer Partners said insurgent consumer brands have evolved from niche challengers into a significant force within India’s consumer landscape, increasingly reshaping multiple consumer categories by identifying underserved needs.

The firms analysed over 240 insurgent brands founded after 2007 that raised at least $3 million and found jewellery insurgents grew roughly 10.6 times versus market averages and beauty and personal care about 4.3 times.

“Indian insurgent brands have fundamentally changed how consumer categories are built and scaled in India. They are winning by focusing on emerging or latent consumer needs, building mastery in media and channel deployment, and high velocity innovation,” said Rohit Shankar, Partner, Bain & Company.

Opportunity for insurgency exists across consumer categories, with disruption occurring at different rates across sectors. Insurgent brands have continued to materially outpace incumbents over the last five years.

Over the last five years, jewellery insurgents have grown nearly 6.5-fold, followed by beauty and personal care at 6-fold, and home & kitchen as well as electric wearables and devices at 4.5-5 times.

Digital commerce and quick commerce became an important enabler for the next generation of consumer insurgents, Rohit added.

Nearly 45 per cent of insurgent brands are headquartered outside India’s top three metros, and while many founders have strong educational credentials, only a small proportion come from traditional top institutions.

The report found that over 50 per cent of the best-selling products on a leading e-commerce platform from the personal care and snacking segment were launched within the last five years.

Less than 1 per cent of consumer companies founded since 2008 have crossed INR 100 crore in revenue. Only 22 per cent of insurgent brands with greater than Rs 100 crore revenue have crossed 500 crores, indicating that sustained breakout growth remains difficult.

—IANS

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