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Crisil Ratings has said revenue of the fast-moving consumer goods (FMCG) sector is expected to grow 7-9 per cent in current financial year (FY24), a tad slower than the 8-9 registered in the past two fiscals. It stated higher volume is expected to drive revenue growth, amid support from a gradual recovery in rural demand. On the other hand, it said urban demand will see stable growth on a higher base.

Further, it said demand from the rural segment began to recover in the last quarter of fiscal 202-23 after being negative for six consecutive quarters. It mentioned this was supported by growing rural income in the last two quarters, coupled with falling rural inflation levels. Demand recovery is expected to sustain this fiscal with continuing moderation in inflation, healthy hike in minimum support prices for key crops, and stable non-agricultural income indicators. 

Moreover, it said the urban segment, which grew in double-digits the past two fiscals, will continue to support overall growth this fiscal owing to increasing disposable incomes, the continuing rise of e-commerce, growth of contact-based services, and progress on premiumisation in-home care and personal care segments.