India’s FMCG majors scale liquid formats as consumers move beyond bars and powders
HUL is investing about ₹2,000 crore over two years in liquid-format capacity as household penetration reaches 58%. Liquid-format volumes rose 42%, versus 3% for traditional formats, with rural demand growing faster than urban markets.
What happened
Hindustan Unilever · Indian FMCG companies are expanding liquid personal- and home-care formats as consumers shift from bars and powders. HUL will invest ₹2,000
Key facts
- HUL investing about ₹2,000 crore over two years
- Liquid-format household penetration rose to 58% in the year ended June 2026 from 52% a year earlier
- Liquid-format volumes grew 42% versus 3% growth for traditional formats
- Liquids account for 5-10% of sales in most categories
- Face wash reaches 33% of households
- Washing-liquid volumes rose 51%
- Rural liquid volumes grew 48% versus 40% in urban markets
Why this matters
Seek liquid-format formulation, packaging and rural-distribution capabilities that can accelerate entry into a fast-scaling category before penetration matures.
What to watch
- Quarterly liquid-format volume growth versus powder and bar categories.
- Rural-versus-urban growth rates and penetration gains beyond the current 58% household level.
- HUL capacity commissioning timelines and evidence of lower liquid-format pricing or wider pack availability.
- New liquid, refill or concentrate launches from P&G, Godrej Consumer, RSPL, Jyothy Labs and regional brands.
- Changes in retailer shelf allocation, fill rates and trade margins for liquid packs.
- Crude-linked packaging costs, surfactant prices and freight inflation, which could pressure liquid-format economics.
- Water-stress conditions and monsoon performance in key rural consumption states.
- Expand low-unit-price refill packs and concentrated liquid variants to reduce affordability and transport barriers.
- Secure kirana distribution with retailer margins, dispenser/display programs and local-language usage education.
- Increase spending on product-performance claims, especially stain removal, water efficiency, skin safety and convenience.
- Build regional manufacturing and packaging capacity closer to high-growth rural clusters to offset freight costs.
- Expect competitors to use price promotions, bundled offers and adjacent-category liquid launches to defend shelf space.
- Monitor whether brands migrate premium consumers toward larger packs and subscription-style replenishment through e-commerce and quick commerce.
Also reported by
- ET Small Business — 1h after first sighting