The global investment banking firm noted that even though growth is expected to slow down in the coming fiscal to 5.6% from 6.7% projected in FY24, mass consumption may rise as easing price pressures support mass consumption.
Rural demand for daily household products and groceries has been challenging in villages, potentially impacting the overall consumer goods sector s volume growth. Rural volumes, which have been lagging urban growth for over a year, could either decline or remain flat due to inflation and the proliferation of smaller regional players. Upcoming general elections and a further reduction in inflation are likely to lead to a gradual improvement in FY25.
FMCG sales were tepid and two-wheeler sales showed signs of recovery only during the festival season. On the flip side, air travel and premium housing surged, and Bollywood made a star-studded return
Listed FMCG companies are grappling with rising competition from local firms or the unorganized sector, especially in categories such as tea, soaps and detergents
FMCG: Weaker-than-expected festive demand, rainfall deficit that hampered rural growth, unseasonal rains that dampened sale of beverages and higher commodity prices all together cooked a difficult-to-digest market recipe this year even though "green shoots" of recovery are becoming more visible.