India’s FMCG sector could grow by 7% to 9% in FY25: Crisil report

India’s fast moving consumer goods industry is set to grow by between 7% and 9% in the 2025 financial year on top of estimated growth of between 5% to 7% in the previous fiscal year, according to a new report by ratings agency Crisil Ratings.

“Revenue growth will vary across product segments and firms,” said Crisil Ratings’ associate director Rabindra Verma in a press release. “The F&B [food and beverage] segment is expected to grow 8% to 9% this fiscal, aided by improving rural demand, while the personal care segment will grow 6% to 7%. The home care segment, which outpaced the other two segments last fiscal, is expected to grow 8% to 9% this fiscal, led by continued premiumisation push and steady urban demand.”
 
Prices for materials needed to produce personal care products appear stable, according to Crisil’s report, which is a boon to businesses. While urban demand is expected to remain steady this financial year, rural demand is experiencing a revival. Crisil Ratings carried out a study of 77 fast moving consumer goods brands in India for its report.
 
“We expect volume growth of 6% to 7% in fiscal 2025 from the rural consumers (~40% of overall revenue), supported by expectation of better monsoon benefitting agricultural production, and hike in minimum support price supporting farm incomes,” said Crisil Ratings’ director Aditya Jhaver. “Higher government spending on rural infrastructure, primarily through Pradhan Mantri Awaas Yojana-Grameen (PMAY-G) for affordable houses, will aid higher savings in rural India, supporting their ability to spend more.”