Indian FMCG Sector Poised for Revenue Rebound

India's FMCG sector is expected to see a mild revenue rebound in 2026, with growth predicted at 6-8%. The recovery is driven by urban demand and steady rural consumption. Crisil Ratings notes stable operating profitability and increased digital adoption amidst rising competition.

India's Fast-Moving Consumer Goods (FMCG) sector is poised for a modest revenue rebound of 6-8% by fiscal 2026, according to a recent report by Crisil Ratings. The rebound is attributed to a gradual recovery in urban areas and steady growth in rural demand.

The ongoing fiscal year of 2024-25 is expected to show a modest revenue growth of 5-6%, primarily due to a volume increase of 4-6%. FMCG companies are finding ways to pass on inflation impacts in key categories like soaps, biscuits, and coffee, which are further driving revenue upticks.

Despite challenges such as high food inflation and rising competition, traditional FMCG companies are innovating through digital channel adoption and direct-to-consumer brand acquisitions. The urban segment currently contributes 60% of revenue, with food and beverages making up nearly half of the sector's income.

(With inputs from agencies.)