According to a CRISIL Ratings study of 77 FMCG companies, growth in FY2025 is in line with the estimated 5-7 per cent growth in FY2024.
Product realizations are expected to grow in low single digits with a marginal increase in prices of key raw materials for the food and beverages (F&B) segment.
The report said that prices of key raw materials for personal care (PC) and home care (HC) segments are seen to be stable.
Aditya said, “We expect 6-7 per cent volume growth (40 per cent of total revenue) from rural consumers in FY2025, expected to benefit from better monsoon to agricultural production and minimum wage growth supporting farm incomes.” “Support is supported by price increases.” Jhaver, Director, CRISIL Ratings.
He said higher government spending on rural infrastructure, primarily through the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) for affordable houses, will help in higher savings in rural India, thereby enhancing their higher spending capacity. There will be support.
On the other hand, volume growth of urban consumers will remain stable at 7-8 per cent during FY2025, supported by rising disposable incomes and continued focus on premium offerings by players, especially in the personal care and home care segments. , the report said.
“The F&B segment is expected to grow by 8-9 per cent in the current financial year due to improvement in rural demand, while the personal care segment is expected to grow by 6-7 per cent,” said Ravindra Verma, associate director, CRISIL Ratings.
Product realizations are expected to grow in low single digits with a marginal increase in prices of key raw materials for the food and beverages (F&B) segment.
The report said that prices of key raw materials for personal care (PC) and home care (HC) segments are seen to be stable.
Aditya said, “We expect 6-7 per cent volume growth (40 per cent of total revenue) from rural consumers in FY2025, expected to benefit from better monsoon to agricultural production and minimum wage growth supporting farm incomes.” “Support is supported by price increases.” Jhaver, Director, CRISIL Ratings.
He said higher government spending on rural infrastructure, primarily through the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) for affordable houses, will help in higher savings in rural India, thereby enhancing their higher spending capacity. There will be support.
On the other hand, volume growth of urban consumers will remain stable at 7-8 per cent during FY2025, supported by rising disposable incomes and continued focus on premium offerings by players, especially in the personal care and home care segments. , the report said.
“The F&B segment is expected to grow by 8-9 per cent in the current financial year due to improvement in rural demand, while the personal care segment is expected to grow by 6-7 per cent,” said Ravindra Verma, associate director, CRISIL Ratings.
