Tata Consumer bets on India’s growth and Gen Z tastes to power global FMCG ambitions

Amid global economic uncertainty, Tata Consumer Products is betting on a diversified strategy of digital innovation, health-focused product development and aggressive market expansion in India to drive its next phase of growth.

In a letter to shareholders in Tata Consumer’s annual report, N. Chandrasekaran, chairman of Tata Sons and head of Tata Consumer’s board, outlined a bullish roadmap that seeks to capitalize on India’s relative economic stability and the shifting dynamics of global consumption.

“Companies must embed emerging trends into their strategies, fostering a culture of agility and continuous improvement,” Chandrasekaran wrote.

Tata Starbucks’ losses surge to Rs 135 crore in FY25, eyes 1,000 outlets in India

The beginning of 2025 saw early optimism for global growth and falling interest rates. But that sentiment quickly turned as inflation re-emerged and policy volatility, particularly in trade, created new concerns. Forecasts for global growth have since been revised downward.

India, however, remains an outlier. The country’s economy has continued to grow steadily, bolstered by structural reforms and favorable demographics. Tata Consumer is leaning into this momentum, noting that India's direct export exposure to the United States is relatively low - just over 2% of its GDP, insulating it somewhat from Western market shocks.

Tata Consumer, which was formed by merging Tata Global Beverages and the consumer products business of Tata Chemicals, has been evolving from a traditional food and beverage player into a broader fast-moving consumer goods (FMCG) company.

In fiscal year 2025, revenue rose 16% to ₹17,618 crore (about $2.1 billion), while earnings before interest, tax, depreciation, and amortization (EBITDA) grew 8% to ₹2,502 crore. The company has delivered a five-year compound annual growth rate of 13% in revenue and 23% in net profit.

Tata Motors posts 51% decline in profit to Rs 8,556 crore in Q4 FY25

Much of this growth has come from newer verticals. Brands like Tata Sampann, Tata Soulfull and the recently acquired Capital Foods and Organic India contributed over ₹3,200 crore, about 28% of domestic revenue. Organic India, for instance, strengthens the company’s push into the health and wellness segment, a consumer trend Chandrasekaran described as “gathering pace.”

Consumer habits are shifting quickly, especially among Gen Z and millennials, who are expected to drive more than 75% of the country’s consumption by 2030. Tata Consumer is positioning itself accordingly, expanding offerings in convenient and health-oriented categories, including ready-to-drink beverages, cooking aids and plant-based snacks. The company’s omnichannel strategy is also a response to this demographic shift. While quick commerce and e-commerce platforms are growing rapidly, the company has retained a significant brick-and-mortar presence - with 4.4 million retail outlets across India.

Tata Consumer has implemented a new Distributor Management System and integrated AI into its supply chain to improve demand forecasting and inventory optimization - moves Chandrasekaran said are enhancing efficiency and scalability.

Beyond India, the company is seeing strong performance in international markets. Tata Consumer rose to the No. 2 position in branded tea in the United Kingdom, up from No. 4 the previous year.

Sustainability remains a central pillar of the company's long-term strategy. Tata Consumer’s efforts are aligned with the Tata Group’s “Project Aalingana,” which focuses on climate adaptation, the circular economy, and community engagement. The company has set ambitious sustainability targets for fiscal 2025–26 under the themes of “Better Sourcing,” “Better Planet,” “Better Communities,” and “Better Nutrition.”

“Our efforts must contribute meaningfully to the well-being of our planet and its people,” Chandrasekaran said. For Tata Consumer, the next phase of growth appears to hinge on adaptability, not only to a changing economy but to evolving tastes, technologies, and values.

With a fortified balance sheet, expanding product lines and a growing international footprint, the company is aiming to become a next-generation FMCG leader, rooted in Indian fundamentals but oriented toward a global future.