Indian FMCG sector to see revenue jump 7-9 pc this fiscal, rural demand surges

New Delhi, July 4 (IANS) Riding on higher volume growth, revival in rural demand and steady urban growth, the fast-moving consumer goods (FMCG) sector in India is projected to see revenue grow 7-9 per cent this fiscal (FY25), said a report on Thursday.

The growth in FY25 follows an estimated 5-7 per cent growth in fiscal 2024, according to a CRISIL Ratings study of 77 FMCG companies.

Product realisations are expected to grow in the low single digits with a marginal rise in prices of key raw materials for the food and beverages (F&B) segment.

That said, key raw material prices for personal care (PC) and home care (HC) segments are seen to be stable, the report mentioned.

“We expect volume growth of 6-7 per cent in fiscal 2025 from the rural consumers (40 per cent of overall revenue), supported by expectation of better monsoon benefitting agricultural production, and hike in minimum support price supporting farm incomes,” said Aditya Jhaver, Director, CRISIL Ratings.

Higher government spending on rural infrastructure, primarily through Pradhan Mantri Awaas Yojana-Grameen (PMAY-G) for affordable houses, will aid higher savings in rural India, supporting their ability to spend more, he added.

On the other hand, volume growth from urban consumers will remain steady at 7-8 per cent during fiscal 2025 supported by rising disposable incomes and continued focus on premium offerings by the players, especially in the personal care and home care segments, the report noted.

“The F&B segment is expected to grow 8-9 per cent this fiscal, aided by improving rural demand, while the personal care segment will grow 6-7 per cent,” said Rabindra Verma, Associate Director, CRISIL Ratings.

–IANS
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