India’s FMCG sector could grow 7-9% in fiscal 2025: Crisil report

The Indian fast-moving consumer goods sector is expected to grow by 7-9% in fiscal 2025, on top of an estimated 5-7% growth in the previous fiscal year, according to a new report by rating agency Crisil Ratings.

“Revenue growth will be mixed across product segments and companies,” Rabindra Verma, deputy director, Crisil Ratings, said in a press release. “The F&B (food and beverages) segment is expected to grow 8%-9% this fiscal, supported by improving rural demand, while the personal care segment is expected to grow 6%-7%. The home care segment, which outpaced the other two segments last fiscal, is expected to grow 8%-9% this fiscal, driven by continued premiumisation push and solid urban demand.”

Prices of inputs required for manufacturing personal care products seem stable, as per the Crisil report, which is a boon for businesses. While urban demand is expected to remain stable this fiscal, rural demand is seeing a revival. Crisil Ratings conducted a study of 77 FMCG brands in India for its report.

“We expect volume growth of 6% to 7% in FY25 from rural consumers (~40% of total revenue), supported by expectations of a better monsoon favourable to agri-production and an increase in the Minimum Guaranteed Price supporting farm incomes,” said Crisil Ratings Director Aditya Jhaver. “Higher government spending on rural infrastructure, mainly through Pradhan Mantri Awaas Yojana-Grameen (PMAY-G) for affordable housing, will help drive higher savings in rural India, supporting their ability to spend more.”