Kolkata. Rating agency Crisil Ratings said in a report on Saturday that the FMCG sector's revenue may grow by 7-9 percent during the current financial year 2024-25. The agency says that revenue is expected to grow due to improved demand in rural areas and stable urban demand. The FMCG sector's revenue has been estimated to grow by 5-7 percent in the financial year 2023-24.

Expectations of increase in revenue

Rabindra Verma, director of Crisil Ratings, says that revenue growth may vary depending on the product category and companies. Due to improvement in rural demand, the revenue of the Food and Beverages (F&B) category may grow by 8-9 percent in the current financial year. Similarly, the revenue of the personal care category may grow by 6-7 percent and the revenue of the home care category may grow by 8-9 percent.

Earlier, ICICI Lombard General Insurance had also estimated in a report that the growth of the FMCG sector could be 7-9 percent in 2024. It said that due to strong government policies, consumption is increasing, and employment opportunities are also being created. However, the report has also expressed concern that the FMCG sector may face inflationary pressure.

ICICI Lombard General Insurance also said that consumer confidence is a little weak right now. This means that consumers may avoid spending on unnecessary items. But still the FMCG sector can grow well because the government is increasing spending on infrastructure. This is expected to bring money into the hands of the people.