The FMCG industry in India is anticipating a double-digit growth in 2024, driven by various factors such as increased consumer demand, favourable economic conditions, and the introduction of innovative products. This growth projection comes after a challenging period in 2023, which was marked by the impact of the COVID-19 pandemic and other economic uncertainties.
Anticipated heightened consumer demand in the FMCG sector arises from improved consumer sentiment and increased disposable incomes linked to urbanisation, escalating aspirations, and limited penetration of branded products. The industry foresees a more favourable economic landscape in 2024 characterised by reduced volatility in commodity prices and inflation rates, likely bolstering consumer spending and sectoral growth. FMCG companies are intensifying efforts in innovation and broadening their product arrays to align with evolving consumer preferences, anticipating substantial sales and market expansion.
The rural market, recuperating from previous consumption lulls, shows signs of narrowing the growth disparity between rural and urban sectors, prompting FMCG entities to target both markets for growth, notably in the food segment. Angshuman Bhattacharya, the EY India National Leader for Consumer Products & Retail, expressed that urban expansion will persist for the FMCG sector. He mentioned an anticipated growth rate of more than 10%, with urban-focused segments projected to exceed a 12% increase within the industry.
RTM Watch’s Take
The FMCG industry’s expectation of double-digit growth in 2024 reflects the positive outlook for the sector. With improving consumer sentiments, favourable economic conditions, and a focus on innovation, FMCG companies are well-positioned to capitalise on the growing demand. However, it is crucial for companies to adapt to changing consumer preferences and invest in marketing strategies to stay competitive in the market.
