Premiumisation Goes Mainstream: How 2025 Redefined India’s Consumption Playbook

2025 emerged as a turning point in India’s consumption narrative, as premiumisation moved decisively from a niche, urban trend into a mainstream behavioural shift. Across categories including beauty, FMCG, automobiles, fashion, beverages, entertainment and technology, consumers showed a growing willingness to pay more—not simply to trade up, but to buy into quality, trust, experience and personal identity.

Industry observers note that what made 2025 distinctive was the breadth of premiumisation. It cut across income segments and geographies, with both mass brands introducing elevated product lines and premium-first players expanding reach. The conversation moved beyond affordability versus aspiration; consumers upgraded because propositions felt meaningfully superior, not merely more expensive.

This shift has triggered a ripple effect across brand strategy. Marketing approaches pivoted from discounts to storytelling, emphasising provenance, design, collaborations and purpose-led narratives. Packaging, content-led engagement, influencer partnerships and experiential marketing increasingly became markers of premium value.

Pricing strategies evolved in parallel, with brands leaning into value-based pricing instead of aggressive undercutting. Confident in clearly articulated premiums, marketers also recalibrated media spends, allocating higher budgets to digital platforms, premium content environments and immersive formats that communicate differentiation and depth.

According to Anil Shankar, Managing Partner, Starcom India, premium choices now influence everyday purchase decisions rather than just occasional indulgences.
“Consumers are not simply trading up on price. They are consciously choosing brands that deliver superior quality, credibility, experience and alignment with personal values,” he said, adding that premiumisation has become a mainstream expression of value in India—demanding sharper audience understanding and smarter media strategies.

The trend is visible across sectors. In FMCG, accessible premium, health-led and science-backed products are outperforming mass offerings. In entertainment, urban millennials and Gen Z are increasingly paying for ad-free, premium content experiences. The automotive sector is seeing buyers move beyond entry-level models towards feature-rich trims, advanced safety systems, connected technologies and electric vehicles.

Regional beverage brands are also feeling the shift. Nikhil Doda, Co-Founder and COO, Lahori Zeera, said 2025 marks the beginning of gradual premiumisation driven by improved formulations, better packaging and larger pack sizes. Changing consumer exposure and renewed pride in regional flavours are making consumers across metros and Tier 2 and Tier 3 cities more willing to pay for quality.

D2C and quick-commerce platforms are accelerating this trend, offering lower price sensitivity and higher openness to premium trials. While national players continue to defend volumes with lower-priced SKUs, premium regional brands are steadily gaining ground.

Premiumisation is also reshaping lifestyle and F&B sectors. Brands such as Impresario Entertainment & Hospitalityand Lyfe Hotels report deeper engagement from existing consumers and growing interest from younger, digitally savvy audiences who value narrative, design and emotional connection as much as the product itself.

“Today’s consumers are digitally informed and expressive about identity. In F&B, people want to feel part of a moment,” said Divya Aggarwal, Chief Growth Officer, Impresario Entertainment & Hospitality Pvt Ltd, noting that premium experiences are widening the consumer base while strengthening loyalty.

Similarly, Sonal Sahoo, Director and Co-Founder, Lyfe Hotels, said the brand’s long-standing focus on design and detailing is resonating more strongly, helping justify premium pricing through clearly experienced value rather than perceived cost.

Media Spends and High-Impact Formats

As premiumisation scaled, media strategies followed suit. Brands increased investments in OTT, connected TV, premium digital video, experiential activations, influencer-led content and immersive OOH formats.
“Brands are moving away from maximising low-cost reach to investing in fewer, higher-quality environments where attention and credibility matter,” Shankar explained, highlighting the growing role of premium video ecosystems and creator-led platforms.

For brands like Lahori Zeera, selective, high-impact branding remains key. Focused investments are aimed at making the brand aspirational across price points while maintaining a distinctive identity. Meanwhile, Impresario and Lyfe Hotels are leaning into rich video, creators and digital communities to communicate craft, experience and intent rather than justify pricing.

2026 Outlook

Looking ahead, premiumisation is expected to deepen in 2026, but brands will need to continuously earn the right to charge more. Consumers are becoming more discerning, rewarding consistency, credibility and clearly delivered value while remaining unforgiving of superficial premiums.

Shankar believes premiumisation will not plateau but will become sharper, driven by rising expectations across product, service, storytelling and media planning. Doda sees 2026 as a pivotal year, with legacy players pushing entry-level pricing to defend volumes, while regional brands grow at both ends of the value spectrum.

Aggarwal predicts accelerated premiumisation in F&B, concluding, “Consumers are not choosing ‘expensive’; they’re choosing considered. Atmosphere, story, design and experience will define value in the years ahead.”