FMCG sector may see 7-9% revenue growth in FY25 on rural recovery: CRISIL

The fast-moving consumer goods (FMCG) sector is expected to see a revenue growth of 7 to 9 per cent this fiscal, helped by higher sales volume and a revival of rural markets, Crisil Ratings said in a report.

Volume growth from urban consumers will also remain steady at 7 to 8 per cent supported by rising disposable incomes and continued focus on premium offerings by the industry players, especially in the personal care and home care segments, it said.

Moreover, the premiumisation trend and growth in volume will expand the operating margin of FMCG companies "by 50-75 basis points to 20-21 per cent", it said.

"The margin expansion would have been higher but for rising selling and marketing expenses amid heightened competition among organised and unorganised players alike," the report added.

The product realisations in FY25 are "expected to grow in low single digits with a marginal rise in prices of key raw materials for the food and beverages (F&B) segment", however, key raw ...