Nestlé India has sharply increased its spending on digital advertising as the maker of Maggi, Nescafé and KitKat looks to deepen its engagement with premium consumers, expand its reach in smaller towns and capture the next wave of consumption growth.
The company spent ₹1,220 crore on advertising and promotions in FY26, up 74% from ₹700 crore in 2022. Advertising expenditure grew 26.7% in FY26 alone, significantly outpacing revenue growth of 14.9% during the year.
The shift is not merely about spending more. It is increasingly about spending differently.
Digital platforms now account for 55% of Nestlé India’s advertising budget, up from 33% in 2021, underscoring the company’s growing reliance on social media, e-commerce, video platforms and digital-first campaigns to reach consumers.
The change reflects a broader transformation taking place across India’s fast-moving consumer goods industry, where brands are reallocating budgets away from traditional mass media and toward digital channels that offer sharper targeting and measurable returns.
For Nestlé, digital has become more than a marketing channel. It is emerging as a critical tool for launching premium products, driving consumer engagement and building new consumption habits.
The company has increasingly used digital platforms to push premium offerings such as Nescafé Gold, KitKat Dessert Delight and its expanding portfolio of coffee products, while e-commerce has become an important avenue for reaching affluent urban consumers.
Nestlé’s strategy is built around what it describes as a virtuous growth cycle: higher investments in brand building strengthen brands, which in turn drive sales growth, profitability and cash generation, allowing the company to reinvest in marketing and expansion.
The company’s <a href="https://bitcomme.com/financial-expert-shares-advice-on-medical-debt/” title=”Financial expert shares advice on medical debt”>financial performance appears to support that thesis. Revenue grew 14.9% in FY26, while volume growth remained in double digits, helping Nestlé expand its presence across urban and rural markets.
The company’s digital push also coincides with a broader shift in India’s consumption landscape. Nestlé expects premium categories to play an increasingly important role in future growth, with its premium portfolio now contributing 14% of overall sales, up from 11% in 2021.
At the same time, the company is expanding its physical footprint in rural India, reaching more than 6.2 million outlets and nearly 220,000 villages across the country.
For Nestlé, the next phase of growth will be driven by a combination of premiumisation, deeper rural penetration and digital engagement. That strategy increasingly requires the company to build brands not just on television screens, but on smartphones and shopping apps.
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First Published on August 6, 2026, 09:54:43 IST
