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CRISIL Ratings in its latest report has said that the fast-moving consumer goods (FMCG) sector is expected to see a revenue growth of 7 to 9 per cent this fiscal, helped by higher sales volume and a revival of rural markets. It said volume growth from urban consumers will also remain steady at 7 to 8 per cent supported by rising disposable incomes and continued focus on premium offerings by the industry players, especially in the personal care and home care segments.

Moreover, it stated the premiumisation trend and growth in volume will expand the operating margin of FMCG companies by 50-75 basis points to 20-21 per cent. It also the margin expansion would have been higher but for rising selling and marketing expenses amid heightened competition among organised and unorganised players alike. 

It added the product realisations in FY25 are expected to grow in low single digits with a marginal rise in prices of key raw materials for the food and beverages (F&B) segment, however, key raw material prices for personal care (PC) and home care (HC) segments are seen to be stable. The F&B segment accounts for nearly half of the sector's revenue while PC and HC segments form a quarter each.