Digital-first brands enter FMCG mainstream

India’s largest fast-moving consumer goods (FMCG) companies have transformed their acquired digital-first brands from experimental ventures into major growth drivers. These brands collectively surpassed an annual revenue of Rs 4,500 crore in the fiscal year 2026, with premium beauty, wellness, and functional food segments outpacing traditional categories.

Primarily built through acquisitions in recent years, these digital brand portfolios are expanding at over 20% annually and now contribute a significant portion to the revenue growth of established players.

Market Leaders and Their Digital-first Portfolios

Leading the trend is Marico, whose digital-first brands—Beardo, Plix, True Elements, Just Herbs, Cosmix, and 4700BC—have achieved an annual revenue run rate (ARR) of Rs 1,500 crore, representing more than 11% of the company’s consolidated revenue.

Hindustan Unilever (HUL) closely follows, with its premium digital beauty brands like Minimalist, OZiva, Simple, and Nexxus reaching an ARR near Rs 1,400 crore in FY26.

ITC’s portfolio of future-forward brands, including Yoga Bar and Mother Sparsh, exceeded Rs 1,350 crore in revenue.

Growth Focus of Smaller Companies

Smaller companies are also focused on growth. Emami’s digital and strategic investments contribute about 6% of its consolidated revenue—approximately Rs 226 crore out of Rs 3,780 crore in FY26—with ambitions to raise this to 25% by FY30. Godrej Consumer Products (GCPL) is developing early-stage digital assets such as Muuchstac, which generates Rs 80-90 crore annually, alongside newer premium brands.

Industry Transformation and Strategic Insights

These figures highlight an ongoing transformation in the Indian FMCG landscape, where established companies are acquiring premium, wellness-centered, and digitally discovered consumer brands to capture new growth segments.

Marico’s Managing Director and CEO, Saugata Gupta, noted the company’s two strong digital platforms in beauty and personal care, as well as foods, each offering substantial growth potential. He emphasized building scalable, profitable businesses in categories with long-term growth prospects.

HUL has followed a comparable approach, investing over Rs 3,500 crore in acquisitions and premium platforms during FY26, including substantial backing for brands such as Minimalist and OZiva. CEO and MD Priya Nair recently outlined the company’s strategy to focus on refined consumer segmentation, brand development, innovation, and digital-first brands aimed at a younger, modern demographic.

Emami has presented an especially aggressive acquisition strategy. Vice Chairman and Managing Director Harsha V. Agarwal highlighted the company’s consistent profitability, cash flow, and debt-free status as key enablers for pursuing new-age consumer brands. Emami has created a dedicated business vertical to acquire founder-led companies in wellness, functional beverages, and personalized beauty, with recent acquisitions including Axiom Ayurveda and a majority stake in IncNut Digital, the parent of Vedix and SkinKraft.

ITC also acknowledges the opportunities in premiumization and evolving consumer preferences. Chairman and Managing Director Sanjiv Puri explained at the company’s 115th annual general meeting that modern consumers seek a combination of taste, nutrition, convenience, trust, and premium experiences. He remarked that India’s consumption is changing due to rising aspirations, health awareness, and digital commerce, prompting ITC to develop a future-ready brand portfolio.

Analyst Perspectives on Acquisition Strategies

Analysts observe that acquisition strategies have matured since the initial surge of cash-burning direct-to-consumer investments.

Abneesh Roy, executive director at Nuvama Institutional Equities, stated that whereas companies once focused solely on growth, they now prioritize acquiring profitable premium brands that can be rapidly scaled through existing distribution channels.

Karan Taurani, executive vice-president at Elara Capital, added that digital-first brands provide established players access to faster-growing segments like wellness, premium personal care, and functional foods without disrupting their core businesses. He highlighted that these categories benefit from digital discovery and quick commerce channels.

Conclusion

For major Indian FMCG firms, digital-first brands have moved beyond experimental status to become key strategic assets. These brands are driving premiumization, fostering innovation, and generating a larger share of incremental growth compared to traditional portfolios that originally supported them.

Key Takeaways

  • Digital-first FMCG brands in India surpassed Rs 4,500 crore in annual revenue in FY26, led by premium beauty, wellness, and functional food segments.
  • Major players like Marico, HUL, ITC, Emami, and GCPL have expanded digital brand portfolios, contributing increasingly to overall revenue.
  • Strategic acquisitions of profitable premium brands enable faster scaling via existing distribution channels.
  • Consumer preferences are shifting towards premiumization, health, and digital discovery, influencing FMCG brand development.
  • Digital-first brands have transitioned from experimental ventures to vital growth drivers in the Indian FMCG sector.