FMCG industry revenue increased by 11 percent during March quarter

08-May-2025 06:07 PM

Mumbai. The revenue of the fast-moving consumer goods (FMCG) industry grew by approximately 11 percent during the January-March 2025 quarter.

Of this growth, 5.1 percent came from an increase in product sales, while 5.6 percent was attributed to higher prices.

According to a leading analyst, even though overall inflation declined, prices of many products remained high due to the elevated cost of edible oils, which contributed significantly to the rise in revenue.

The larger contribution of price increases compared to volume growth suggests that consumers opted more for smaller pack sizes.

While sales rose across all categories, the increase in non-food items outpaced that of food products. The rural market continued to show a rising trend in FMCG sales, although growth slightly slowed in metros and larger cities.

With forecasts of a good monsoon this year and recent revisions in tax slabs, competition among FMCG companies is expected to intensify in the April-June quarter and beyond.

Wheat prices are falling, and prices of pulses have not seen major increases. The import price of palm oil is expected to decrease in the coming months due to a softening trend in Malaysia and Indonesia.

Sugar prices have remained relatively stable with only minor fluctuations. As a result, the production cost of food-related FMCG products may come down.

Companies that can reduce prices to attract consumers are likely to see higher business growth, while others may not perform as well.

From November 2024 to April 2025, palm oil imports into India declined because its prices were higher than those of soybean oil.