After a mixed 2025, consumer durables look to disciplined growth this year

Consumer durables brands say 2025 delivered steady demand and measured growth across categories, with companies taking stock of category momentum, post-GST demand behaviour and evolving marketing strategies as they plan for 2026. Brand responses indicate that growth during the year was driven by a mix of replacement demand, premiumisation in select segments and gradual expansion beyond metro markets. 

While value-led products continued to see price sensitivity, brands reported stronger traction for higher-capacity, feature-driven and energy-efficient offerings, reflecting a more deliberate purchase cycle among consumers.

However, the operating environment has not been without disruption. An early onset of the monsoon curtailed peak summer demand for cooling appliances, weighing on sales of products such as air conditioners, fans and refrigerators. As a result, players including Voltas, Blue Star, Havells India and Crompton Greaves Consumer Electricals reported muted earnings in the first quarter of FY26, despite stepping up promotional activity. Coming off a strong base in FY25, the sector, which accounted for Rs 2,640 crore in advertising spends in 2024 according to the Pitch Madison Advertising Report 2025, was unable to fully offset the weather-led demand slowdown in the quarter.

Echoing this divergence across categories and regions, Anil Rai Gupta, Chairman & Managing Director (CMD) and CEO, Havells India Limited, noted that in 2025, consumption trends varied across markets, even as demand linked to housing, energy efficiency and premiumisation remained healthy. “Our focus has remained on staying close to the consumer, strengthening our distribution, and leveraging our manufacturing capabilities to respond with agility,” he said. 

From a marketing lens, brands continued to recalibrate their media mix in response to these shifts. FY25 saw a mixed demand environment for Crompton, with prolonged monsoons impacting cooling categories, even as other parts of the portfolio showed resilience. Pumps and small domestic appliances performed steadily, aided by new launches, premium offerings and strong traction across e-commerce and modern trade. Solar emerged as a key growth driver, with rapid scale-up in solar pumps and a strong rooftop order pipeline.

Tanmay Prusty, Chief Marketing Officer, Crompton Greaves Consumer Electricals Limited said, “Throughout the year, we sustained our investments in brand-building, deploying a balanced mix of traditional mass media and digital. High-impact print, out-of-home, influencer collaborations combined with presence on high-reach mediums like TV helped reinforce leadership and saliency at scale, while digital enabled sharper targeting, higher engagement and commerce-led outcomes.”  

This approach translated into a series of high-impact brand initiatives. The strategy was executed through associations with platforms such as Cricbuzz and purpose-led communication under the “Tech With Heart” positioning. The brand also deepened engagement through collaborations such as integration in Sania Mirza’s podcast and refreshed category salience with new jingles for its air cooler portfolio. Going ahead, the focus remains on premiumisation, consumer-led innovation and strengthening go-to-market execution across channels.

Despite broader category pressures, some brands continued to outperform the market. Kamal Nandi, Business Head and EVP, Appliances Business at Godrej Enterprises Group, said that despite industry degrowth, the company delivered double-digit growth in 2025, led by washing machines, followed by air conditioners and refrigerators. While refrigerator growth was strongest in cities with populations above 10 lakh, air conditioners and washing machines saw healthy demand across both large cities and rural markets, supported by a strong portfolio, brand-building efforts, network expansion and targeted promotions. 

“Currently, over half of Godrej’s portfolio is AI-powered. With the right mix of affordability, accessibility, and newer launches, we are confident of further strengthening our position in the market and expect over 20% growth at the end of the financial year,” he added. 

Expanding on category-level shifts, Nandi said that premiumisation continued to shape demand, with categories such as frost-free refrigerators, split air conditioners and front-load washing machines outperforming mass segments. Consumers increasingly preferred value-led offerings focused on convenience, comfort and improved aesthetics.

Several multinational players also used 2025 as a year of strategic repositioning. A Panasonic spokesperson said 2025 marked a year of transformation for Panasonic India, with sharper focus on HVAC, the smart home ecosystem, energy solutions and its holistic solutions business spanning homes, communities, logistics and industrial environments. The shift was supported by improving consumer sentiment, policy continuity and a favourable macro environment.

From an industry and agency lens, 2025 is being viewed as a year of recalibration rather than contraction. According to Ambika Sharma, Founder and Chief Strategist, Pulp Strategy, 2025 was a year of recalibration for consumer durables. “Demand did not collapse, but it became far more selective. Consumers delayed upgrades, researched harder, and expected clearer value for money. Growth was driven by replacement cycles, premiumisation at the top end, and energy-efficient, smart products, while mid-tier volume saw pressure.” She added that momentum existed, but it was uneven, favouring brands that combined distribution strength with differentiated product narratives.

GST overhaul & 2026 outlook

Regulatory clarity also emerged as a key theme shaping outlook discussions. On the regulatory front, brands said the GST overhaul has brought greater clarity and stability to pricing and channel planning, helping normalise demand and improve supply chain predictability. As they look ahead to 2026, consumer durables companies expect this structural clarity to support more measured growth, with sharper focus on portfolio optimisation, disciplined advertising spends and tighter alignment between demand visibility and marketing investments.

Explaining the near-term impact, Nandi said, “This year the durables industry at large has been witnessing a relative slowdown in consumption driven by environmental and macroeconomic factors. The GST reduction on ACs was a big announcement for the industry. On one hand its early announcement in August slowed down the sales till festive, but on the other, it gave a boost at the onset of the festive sales.”

Looking further ahead, Gupta said policy measures such as GST rationalisation and tax incentives have supported overall sentiment and reinforced the shift towards branded, higher-quality products. Looking ahead to 2026, he flagged structural drivers including urbanisation, rising aspirations in semi-urban and rural markets and growing preference for energy-efficient solutions, while noting that localisation and operational efficiencies would help mitigate global and currency-related risks.

Sharma added to this and said that the GST overhaul pushed brands to clean up pricing and supply-chain inefficiencies, but it also forced sharper communication. With reduced room for discount-led messaging, brands had to justify price through performance, durability, and long-term cost savings. Communication moved from “offer-led” to “value-led,” especially in categories like appliances and electronics where trust and after-sales reassurance matter.

On advertising outlook, she also predicts advertising spends to grow in 2026, but not explosively. “Expect mid-single-digit to low-double-digit growth, with budgets moving toward performance-accountable formats, retail media, and content that supports consideration, not just awareness. Brands will spend more carefully, not more blindly. The focus will be on efficiency, measurable outcomes, and building long-term preference rather than chasing short-term spikes,” she noted. 

Reinforcing this forward-looking view, a Panasonic spokesperson further noted that looking ahead to 2026, our priority is to build on this transformation and deliver stronger business outcomes through innovation, deeper localisation, powerful consumer experiences, and overall brand strengthening. “India continues to remain one of the most exciting and resilient markets globally, and we see strong potential for broad-based growth in the coming year,” the spokesperson said. 

As consumer durables brands enter 2026, the emphasis is shifting from chasing scale to sharpening execution. With GST clarity in place and demand patterns becoming more predictable, companies are expected to prioritise portfolio depth, energy-efficient innovation and more accountable marketing investments. While near-term variables such as weather volatility and global headwinds remain, industry leaders believe brands that combine strong distribution, localised manufacturing and value-led communication will be better positioned to sustain growth and build long-term consumer trust in an increasingly competitive market.