FMCG sector to see 7-9% revenue growth this fiscal: Report

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

The expected revenue increase this financial year (2024-25) will be supported by higher volume growth on the back of a revival in rural and steady urban demand.

The estimated growth of the FMCG sector in 2023-24 was 5-7 per cent.

The report said product realisation is expected to grow in single digits with a marginal rise in prices of key raw materials for the food and beverage (F&B) segment.

However, the prices of key raw materials for the personal care and home care segments are likely to be stable.

CRISIL Ratings Director Rabindra Verma said, "Revenue growth will vary across product segments and firms. The F&B segment is expected to grow 8-9 per cent this fiscal, aided by improving rural demand. The personal care segment is likely to grow by 6-7 per cent, and the home care by 8-9 per cent." The FMCG players will continue to eye inorganic opportunities, which will help them expand product offerings, the report said.

Sustained improvement in the rural economy, which depends on the monsoons and farm incomes, will be essential for generating steady demand, it added.