Wednesday, July 24, 2024

FMCG Sector Outlook for Q124: Rural Tailwinds to Lift Up Performance

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The FMCG sector is expected to perform well in the April-June 2024 quarter due to increased demand in rural areas and higher sales of summer products. Companies focusing on rural markets are seeing better growth than those in urban areas. Analysts predict a modest single-digit increase in sales volumes for key FMCG companies during this period, driven by factors like intense summer heatwaves and fewer holidays.

Rural markets are gradually recovering, with products like cold beverages and personal care items such as talcum powder and sunscreen experiencing strong sales. Despite challenges like reduced out-of-home consumption during heatwaves, FMCG companies remain optimistic about volume growth in the coming fiscal year.

Looking ahead, industry forecasts anticipate a revenue growth of 7-9% for the fiscal year, supported by increased volume sales and stable urban demand. The sector is also expected to benefit from government initiatives aimed at boosting rural incomes and infrastructure.

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