FMCG sector revenue growth forecast: 7-9% in 2024-25

Kolkata, July 6 (PTI) The fast-moving consumer goods (FMCG) sector is expected to register a revenue growth of 7-9 per cent this fiscal, according to a report released by CRISIL Ratings on Saturday.

The expected revenue growth in this fiscal year (2024-2025) will be supported by higher volume growth on the back of a revival in the rural market and stable urban demand.

The fast-moving consumer goods (FMCG) sector is expected to grow by 5-7% in 2023-2024.

The report indicated that single-digit growth in product realization is expected with a slight increase in prices of key raw materials for the food and beverages (F&B) segment.

However, prices of key raw materials 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. The F&B segment is expected to grow 8-9 per cent this fiscal, helped by improving rural demand. The personal care segment is likely to grow 6-7 per cent and home care 8-9 per cent.”

Fast-moving consumer goods (FMCG) companies will continue to look for inorganic growth opportunities that will help them expand their product offerings, the report says.

It added that generating stable demand will require sustained improvement in the rural economy, which depends on monsoons and farm incomes.