Aggressive discounting in the FMCG sector is beginning to backfire, with consumers increasingly associating heavy price cuts with compromised product quality, according to a report by financial management firm Emkay Global.
Fast-moving consumer goods (FMCG) companies reported a muted performance in the fourth quarter of FY25 due to continued weakness in the urban market, according to a report by Axis Securities.
Urban consumers allocate nearly 50 per cent of their food budgets to packaged and prepared foods, giving a significant boost to the FMCG sector, said a recent Deloitte-FICCI report.
The fast-moving consumer goods (FMCG) sector is expected to see a rebound in demand in the first half of financial year 2025-26, supported by a revival in rural markets, easing inflation, and favorable pricing strategies, according to a recent report by ShriRam Mutual Fund.
India's fast-moving consumer goods (FMCG) sector should see revenue rebound 100 to 200 basis points to 6-8 per cent in the next fiscal year 2025-26, compared with a more modest 5-6 per cent expected rise in the current financial year 2024-25, Crisil Rating said Wednesday in a report.
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The report highlighted that targeted investments in job creation, along with enhanced farm and non-farm incomes, could play a significant role in reviving the rural economy.
The improved performance is attributed to multiple factors, including higher government spending on infrastructure and welfare programmes, better agricultural output, and effective marketing strategies tailored to regional needs.
The FMCG sector is likely to see a boost in the coming months because of favourable global factors and domestic revival at play, highlighted a report by Centrum Institutional Research.
Despite facing headwinds such as severe heatwaves in the northern region, heightened competitive intensity, and the impact of the upcoming general elections, most FMCG companies managed to post mid to high single-digit revenue growth.