Kolkata: A report released by CRISIL Ratings on Saturday predicts a 7-9 per cent revenue growth for the fast-moving consumer goods (FMCG) sector this fiscal year.
There will be a boost in revenue for this fiscal year (2024-25) due to increased volume growth driven by a resurgence in rural demand and consistent urban demand. The FMCG sector is projected to grow by 5-7 per cent in 2023-24.
The report stated that the food and beverage (F&B) sector is projected to experience single-digit growth in product realisation, along with a slight increase in prices for key raw materials. Nevertheless, it is probable that the prices of essential raw materials for the personal care and home care industries will remain consistent.
According to CRISIL Ratings Director Rabindra Verma, revenue growth will differ among product segments and companies. The food and beverage sector is projected to increase by 8-9 per cent this financial year, supported by a rise in rural demand. The personal care sector is expected to experience a 6-7 per cent increase, while the home care sector is predicted to grow by 8-9 per cent.
The report mentioned that FMCG companies will keep looking for inorganic opportunities to grow their product range. Continual growth in the rural economy, hinging on the monsoons and farmers' earnings, will be crucial for creating consistent demand, the report stated.
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