Consumer discretionary sector to post 7-9% revenue growth this fiscal: CRISIL Ratings

The consumer goods sector is expected to post moderate revenue growth this fiscal year, a new report said. File | Image Source: MOHD ARIF

The fast-moving consumer goods (FMCG) sector is expected to report a 7-9% revenue growth this fiscal, according to a report published on July 6 by CRISIL Ratings.

The expected revenue growth in fiscal 2024-25 will be supported by higher volume growth due to revival in rural demand and steady demand from urban areas. The FMCG sector is estimated to grow at 5-7% in fiscal 2023-24.

The report said product realization is expected to grow in single digits with a slight increase in key raw material prices for the food and beverage (F&B) segment. However, key raw material prices for the personal care and home care segments are likely to remain stable.

CRISIL Chief Ratings Officer Rabindra Verma said, “Revenue growth will be mixed across product segments and businesses. F&B segment is expected to grow 8-9% this fiscal, helped by improving rural demand. Personal care segment is likely to grow 6-7% and home care 8-9%.

FMCG players will continue to look for inorganic opportunities that will help them expand their product offerings, the report said. Sustained improvement in the rural economy, which depends on monsoons and farm income, will be essential to generate steady demand, it added.