FMCG sector to have sustained growth rate of 7-9% in 2024: Report

The FMCG sector in India is poised for sustained growth with a projected expansion of 7-9% in 2024, supported by government efforts to stimulate consumption and create employment opportunities, according to a report by ICICI Lombard General Insurance. Despite facing challenges like inflationary pressures, subdued consumer confidence, and varying unemployment rates, the sector remains a cornerstone of the economy, boasting an economic footprint exceeding US$ 109.10 billion (Rs. 9.1 lakh crore). Its pivotal role in driving economic growth and employment underscores its resilience and adaptability in navigating uncertainties.

Digital transformation is a key driver within the FMCG industry, evidenced by the rise of online sales channels valued at US$ 20.38 billion (Rs. 1.7 lakh crore). Direct-to-consumer (D2C) models highlight the sector's agility in responding to shifting consumer preferences and market dynamics. Following a challenging period post-pandemic, the FMCG sector exhibited notable recovery in the latter half of 2023, marked by significant volume and value growth. Rural markets played a crucial role in this resurgence, contributing notably to the sector's overall performance. Government initiatives such as Gati Shakti and Amrit Kaal Vision 2047 have further bolstered the sector's foundation, contributing to a reduced risk index from 68 to 66, indicating improved market stability and growth prospects.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.