India could be among top 5 global markets in coming years: Nestle's Manish Tiwary

New Delhi, Dec 10 (PTI) India could figure among the top five markets for Swiss multinational food conglomerate Nestle SA in the coming years, helped by the current macroeconomic trends of the country, the company's India Chairman & Managing Director Manish Tiwary said, adding that he would be disappointed if it does not move into that position.

However, this will also depend on factors such as how fast Nestle India grows and how fast other markets of the parent entity grow, Tiwary told PTI.

"All the macroeconomic factors are in place for India to continue growing strongly. But ultimately, it is up to the government, to me, and to the 9,000-plus people who work with us at Nestle India to make it happen. I would be disappointed if Nestle India does not move into the top five markets globally in the years ahead," he said.

Currently, India, with over Rs 20,000 crore sales, is a "priority", and one of the fastest-growing markets for the Swiss multinational. India has become the largest Nestle market globally for Maggi and the second-largest for the chocolate wafer brand Kit Kat.

Without sharing any forward-looking guidance, Tiwary said he expects growth in a number of categories in which Nestle India operates.

"Today, two out of three Indian households use our products. I want that number to grow as the categories we operate in evolve. And when I say food, it is not just for humans — it includes pet parents and their pets," he said, adding, "We must keep building on it, ensuring our products remain relevant, accessible, and trusted by more consumers." As part of its expansion, Nestle India aspires for a bigger slice of the rural market, which has been growing faster than the urban market over the last several quarters. Tiwary expects Nestle's rural growth to be at least 1.5 times faster than its overall growth.

Moreover, Nestle is also looking at the premium opportunities in the FMCG markets as 20–30 million households in India consume at levels comparable to the European markets. Through its existing brands, Nestle will serve premium customers through differentiated offerings, said Tiwary.

About the current FMCG market landscape, Tiwary said markets are picking up, helped by "important intervention" such as tax relief measures and GST reforms by the government. The food and beverage industry has shown double-digit value growth in the last two quarters. A year ago, urban markets were almost flat, with negative volume growth.

"Today, even urban markets are in double digits, while rural continues to grow steadily. So, the markets are picking up. Now the responsibility shifts to brand owners like us. We must capitalise on the positive consumer sentiment and the structural benefits provided," he said.

According to Tiwary, there is "enormous headroom" for growth in the market as India's per capita consumption across categories remains among the lowest — not just compared to Europe or the US, but even relative to its neighbouring countries.

"Our role is to innovate and drive that growth. I remain very positive. Of course, in turbulent times, it is difficult to forecast beyond 6–12 months. But if I look at the first half of 2026, I expect growth to remain volume-led, and the food and beverage category to continue delivering double-digit growth," he said.

Talking about commodity prices, Tiwary said coffee and cocoa, the two important inputs used by Nestle, have been under pressure for some time. However, currently, their prices have been stabilised, and forecasts suggest they may soften over the next year, though beyond that it is difficult to predict.

"If inflation eases, both consumers and companies will benefit, as it allows us to serve consumers better on pricing. GST has already helped us manage some of these challenges, and the benefits passed on to consumers have led to increased consumption. We have seen this reflected in the market over the last two months," he said.

When asked whether he foresaw any price hike in the next year, Tiwary said: "It would be too dramatic to say there will be no price hikes, given the volatility in global markets. However, based on current forecasts for the next six months and the GST benefits, I expect the first half of 2026 to be driven more by volume growth than by pricing actions." Currently, the rural market contributes to around 15 per cent of Nestle India, and e-commerce contributed to 12.5 per cent of domestic sales a quarter ago, aided by quick commerce and new launches.

"We are in a very sweet spot right now. E-commerce and quick commerce are performing strongly, and our market shares are higher than the industry average. At the same time, we have a tremendous opportunity in rural markets. So rather than fixating on a percentage, I would define success as ensuring that rural grows at least 1.5 times faster than our overall growth," Tiwary said.

According to him, the rural market presents a tremendous opportunity due to relatively low penetration of many categories, which "excites" him in his current role as Nestle India CMD.

Tiwary further said that Nestle's pet food business Purina and its Nestle Health Science business, for which it has an year old joint venture with Dr Reddy, has made excellent progress.

"Whether it is the JV with Dr Reddy's, Nespresso, or Purina, these ventures make me very optimistic about Nestle's future in India," he said. PTI KRH HVA