FMCG industry expects consumption revival in 2025 after a challenging year

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FMCG industry expects consumption revival in 2025 after a challenging year - Business Standard

Quick Summary:

The FMCG industry hopes for a revival in consumption growth in 2025 with some 'green shoots' already visible, after having a challenging year amid escalating input costs and a double-digit rise in food inflation, which ultimately slowed down the pace of the urban market growth in the second half of 2024.

Soaring prices of commodities such as palm oil, coffee, cocoa and wheat forced FMCG players to go for a hike of 3 to 5 per cent or resort to shrinkflation by reducing pack sizes and grammage to retain attractive price points, fearing a volume loss.

The makers also expect a shot in the arm in the upcoming annual budget, which would help the stressed middle-income group and stimulate consumption, besides a good monsoon and continued rejuvenation of the rural market.