FMCG Sector Anticipates Subdued Growth Until September 2024

FMCG Sector Overview

Consumer goods growth may improve in the second half, led by the harvest of Rabi crops.

Kantar report predicts subdued FMCG growth till September 2024 due to uncertain agricultural sector and upcoming elections.

Impact of General Elections

Despite promises, past elections didn't boost FMCG consumption; rather, saw stagnation or decline.

Historical data suggests FMCG growth remains stagnant during general elections.

Agricultural Sector Analysis

Kharif crop yields are impacted by uneven rainfall, likely affecting 2024's first half.

India's agricultural growth is projected at 1.8% for 2023-24, a seven-year low.

Consumer Behavior Trends

Cooking oil consumption dropped, while atta (flour) continued double-digit growth in 2023.

FMCG consumption failed to grow for the second consecutive year post-pandemic.

Growth is mainly driven by household population increase, highlighting consumer behaviour shifts.

FMCG growth at 6.1% in 2023; excluding atta, growth reduced to 2.7%.

FMCG Growth Insights

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