Report

FMCG Sector To Witness 7-9% Revenue Growth This Fiscal: CRISIL Ratings

• ByStartupStory     |    July 8, 2024

The fast-moving consumer goods (FMCG) sector is poised for a significant revenue boost, with an anticipated growth of 7-9% in the fiscal year 2024-25, as per a report released by CRISIL Ratings on Saturday.

The forecasted revenue surge will be driven by a combination of higher volume growth, spurred by a revival in rural demand, and steady urban consumption. In contrast, the FMCG sector saw an estimated growth of 5-7% in the previous fiscal year, 2023-24.

The report highlights that product realisation is expected to grow in single digits, reflecting a marginal increase in the prices of key raw materials for the food and beverage (F&B) segment. Conversely, the prices of essential raw materials for the personal care and home care segments are predicted to remain stable.

“Revenue growth will vary across product segments and firms. The F&B segment is expected to grow 8-9% this fiscal, aided by improving rural demand. The personal care segment is likely to grow by 6-7%, and the home care by 8-9%,” stated CRISIL Ratings Director Rabindra Verma.

In addition to organic growth, FMCG companies are expected to continue pursuing inorganic opportunities to diversify and expand their product offerings.

The report underscores the critical role of a sustained improvement in the rural economy, which is heavily reliant on monsoons and farm incomes, in generating consistent demand for FMCG products.

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