New Delhi, The consumer goods sector is expected to have a sustained growth rate of 7-9 per cent in 2024, supported by government initiatives to stimulate consumption and create employment opportunities, according to a report.
The resilience and adaptability of the consumer goods sector, coupled with strong government support and digital transformation initiatives, position it favorably to navigate through uncertainties and emerge stronger.
"Looking ahead, the consumer goods sector in India is poised for sustained growth, with forecasts indicating an expansion of 7-9 per cent in 2024," according to a report by ICICI Lombard General Insurance.
However, the sector faces challenges such as "inflationary pressures, subdued consumer confidence and prevailing unemployment rates."
Now, the consumer goods industry has a "burgeoning economic footprint", exceeding Rs 9.1 lakh crore and playing a "critical role" in driving India's economic growth and employment generation, he added.
Additionally, the online sales channel of consumer goods is also increasing and has been valued at Rs 1.7 lakh crore. Segments like D2C reflect “rapid digital transformation and evolving consumer purchasing behavior.”
"These digitalization trends underlined the industry's adaptability to changing market dynamics and its proactive approach to serving digitally savvy consumers," according to the Corporate India Risk Index 2023 report.
The consumer goods industry was struggling post-pandemic and the rural sector was witnessing successive decline for some quarters.
However, the industry managed to show resilience and adaptability amid evolving consumer trends and witnessed a notable rebound in volume and value growth in the second half of 2023.
The "third quarter of 2023 witnessed an impressive volume growth of 8.6 percent across the country, with rural markets contributing significantly with a growth rate of 6.4 percent," it said, adding that this noted a favorable consumer environment.
Key government initiatives like Gati Shakti and Amrit Kaal Vision 2047 played a pivotal role in strengthening the foundations of the consumer goods sector and fostering long-term growth.
Based on these factors, "the risk index for the consumer goods sector decreased from 68 to 66," she added.
The resilience and adaptability of the consumer goods sector, coupled with strong government support and digital transformation initiatives, position it favorably to navigate through uncertainties and emerge stronger.
"Looking ahead, the consumer goods sector in India is poised for sustained growth, with forecasts indicating an expansion of 7-9 per cent in 2024," according to a report by ICICI Lombard General Insurance.
However, the sector faces challenges such as "inflationary pressures, subdued consumer confidence and prevailing unemployment rates."
Now, the consumer goods industry has a "burgeoning economic footprint", exceeding Rs 9.1 lakh crore and playing a "critical role" in driving India's economic growth and employment generation, he added.
Additionally, the online sales channel of consumer goods is also increasing and has been valued at Rs 1.7 lakh crore. Segments like D2C reflect “rapid digital transformation and evolving consumer purchasing behavior.”
"These digitalization trends underlined the industry's adaptability to changing market dynamics and its proactive approach to serving digitally savvy consumers," according to the Corporate India Risk Index 2023 report.
The consumer goods industry was struggling post-pandemic and the rural sector was witnessing successive decline for some quarters.
However, the industry managed to show resilience and adaptability amid evolving consumer trends and witnessed a notable rebound in volume and value growth in the second half of 2023.
The "third quarter of 2023 witnessed an impressive volume growth of 8.6 percent across the country, with rural markets contributing significantly with a growth rate of 6.4 percent," it said, adding that this noted a favorable consumer environment.
Key government initiatives like Gati Shakti and Amrit Kaal Vision 2047 played a pivotal role in strengthening the foundations of the consumer goods sector and fostering long-term growth.
Based on these factors, "the risk index for the consumer goods sector decreased from 68 to 66," she added.
