Indian FMCG Companies Set to Finish FY25 with Single-Digit Revenue Growth, Expect Favorable Base in FY26

Indian FMCG (Fast-Moving Consumer Goods) companies are likely to end the financial year 2025 (FY25) with single-digit revenue growth. The growth is expected to be slower compared to previous years. Many of these companies have faced challenges such as higher raw material costs, inflation, and changing consumer habits. Despite these struggles, they are hopeful that things will improve in the next year.

The FMCG sector includes companies that produce goods like food, beverages, personal care, and cleaning products. These companies are an important part of the Indian economy because they cater to daily needs. However, this year, rising costs and lower consumer spending have made it harder for these companies to grow their revenues.

Companies like Hindustan Unilever, Dabur, and Marico have reported slower growth in FY25. They are facing high prices for materials, such as oils and packaging, which have affected their profit margins. To manage these challenges, some companies have raised prices, but that hasn’t always worked as expected. Higher prices sometimes make customers hesitant to buy products, especially in rural areas.

While the outlook for FY25 is not very strong, many FMCG companies expect a better situation in FY26. They believe the base will be more favorable next year. A favorable base means that the comparison between this year and next year will be easier, and growth will look better. Companies are also hopeful that inflation will ease, and consumers will begin to spend more. If these things happen, FMCG companies could see a return to better growth.

Experts suggest that companies will continue to focus on cost management and expanding their product offerings to meet changing consumer needs. Companies may also invest in new marketing strategies and improve distribution networks to reach more customers.

Overall, while the Indian FMCG sector faces a tough year, companies remain optimistic about future growth, especially as they expect conditions to improve in FY26.