‘Markets witnessing significant shifts in consumer behaviour, business models’ says Tata Consumer Products

Geopolitical uncertainties, shifts in global supply chains, advances in generative AI, and climate events continued to test business resilience, said P.B. Balaji, Non-Executive, Non-Independent Director, Tata Consumer Products.

Global growth was expected to moderate in the near term, with the IMF forecasting a 2.8% expansion for emerging markets in 2025, he said, adding advanced economies continued to grapple with inflation and tight financial conditions, but emerging markets—especially India—stood resilient. India remained one of the fastest-growing large economies in the world, with GDP growth estimated at north of 6%.

‘’We are navigating through a world that is both dynamic and demanding. Yet, even amidst this volatility, we find ourselves at a unique moment in history—where innovation, transformation, and consumption-led growth are converging,’‘ he said while speaking at the company’s Annual General Meeting on Wednesday.

In his speech he said, against this backdrop, markets were also witnessing significant shifts in consumer behaviour and business models. For instance, consumers were becoming more health-conscious; there was a clear trend towards premiumisation, even in staples; with urbanisation, time-constrained consumers were seeking convenience, leading to rising demand for cooking aids, ready-to-drink beverages, and snacking, he observed.

Distribution, he further said, was being reshaped by quick commerce, but physical retail remained deeply relevant. Also, digital-first marketing and hyper-personalisation were rewriting the brand playbook. At the same time, Artificial Intelligence was rapidly transforming every function—from demand forecasting and content generation to inventory optimisation and pricing intelligence, he told the shareholders.

Tata Consumer Products saw quantum growth in last 5 years

On the growth of Tata Consumer Products, Mr. Balaji said, when Tata Consumer was formed, five years ago, it had a largely single category footprint—Tea and Coffee and today the company has gone through a significant transformation to become one of the fastest-growing FCB companies in India, operating across multiple categories and brands.

`Innovation is a critical muscle for an FMCG company and over the last 5 years, we have significantly scaled our innovation efforts, launching over 150 products, and our innovation to sales ratio has grown from 0.8% in FY20 to 5.2% in FY25, among the best in the industry,’‘ he claimed.

According to him, digital was no longer a vertical – it was embedded across how the company operated, went to market and engaged with millions of consumers. ‘‘We have deployed several high-impact AI use cases across sales, marketing, sourcing and RCD (Residual Current Device). Companies that embed AI deeply into operations will lead the next phase of value creation.’‘

Focus on grooming internal talent

Balaji further said, at the heart of the company’s transformation was a strong focus on building a future-ready organisation—one that was agile, inclusive, and deeply aligned with purpose.

‘’We are taking a deliberate approach to grooming internal talent – this includes creating structured leadership pipelines, cross-functional learning experiences, and long-term capability building,’‘ he said.

According to him, the company’s goal is clear: to nurture talent from within and build an organisation that leads not just today, but into the future. “This roadmap is already delivering results—and it positions us well for what lies ahead. We see opportunity in creating an FMCG powerhouse and building brands of tomorrow for the modern Indian and global consumer.’‘

Tata Consumer Products’ investments in AI, talent, and digital ecosystems would help it operate with greater precision and speed, Mr. Balaji added.