Experience Brands See Growth in Brand Values Amid Slowing FMCG Sector
Muted consumer demand is significantly impacting the valuation of India’s top 75 brands, with growth projections for 2024-25 dropping to a mere 6%, a stark decline from the 19% increase observed last year. According to the Kantar BrandZ Most Valuable Brands Report 2025, the combined value of these brands now stands at $475.4 billion. The report highlights a shift in consumer preferences towards the “experience economy,” where brands in travel and hospitality are thriving despite overall sluggish mass consumption.
Declining Brand Valuations Amid Economic Growth
The Kantar report reveals a troubling trend: while India’s economy continues to expand, the growth in brand value is lagging behind. The study analyzed 1,620 brands across 112 categories, combining financial metrics with consumer equity research. The findings indicate that the share of Indian brands perceived as “meaningfully different” has plummeted from nearly 12% in 2014 to just 4.3% in 2025. This decline in consumer equity suggests that many brands are struggling to connect with their audiences, leading to a decrease in their overall market value.
Despite the overall downturn, some brands are managing to stand out. The report notes that brands that offer unique value and relevance consistently outperform their competitors. For instance, HDFC Bank has focused on innovation, while Royal Enfield has cultivated deep brand loyalty through community engagement initiatives like its Motoverse event in Goa. These examples illustrate that brands that deliver both meaning and differentiation are more likely to succeed in the current market landscape.
Emergence of the Experience Economy
Interestingly, the report highlights a shift towards the experience economy, where consumers are prioritizing experiences over traditional goods. Brands in the travel and hospitality sectors, such as Taj, IndiGo, and MakeMyTrip, have emerged as some of the strongest performers this year. This trend reflects a broader consumer preference for memorable experiences rather than everyday staples. Additionally, Zomato’s expansion into lifestyle categories with its District by Zomato dine-out app and the entry of retail chain Westside further exemplify this shift.
The report underscores that even in a challenging economic environment, brands that adapt to changing consumer preferences can thrive. The focus on experiences indicates a potential avenue for growth, as consumers increasingly seek out brands that offer unique and engaging interactions. This trend may provide a lifeline for brands struggling with muted demand in other sectors.
Top Brands and Sectoral Trends
According to the Kantar report, HDFC Bank retains its position as India’s most valuable brand, with an 18% increase in value, bringing it to nearly $45 billion. Other notable brands include Tata Consultancy Services, Airtel, Infosys, and ICICI Bank. The rankings reveal that banking and financial services continue to dominate, followed closely by B2B technology firms like TCS and Infosys, with telecom providers also holding a significant share.
This year marks the debut of four cement brands in the rankings, highlighting the sector’s crucial role in supporting India’s infrastructure development. UltraTech Cement leads this new group, followed by Bangur Cement, Ambuja Cement, and JK Cement. The inclusion of these brands reflects the ongoing growth in the construction and infrastructure sectors, which are vital to the country’s economic progress.
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