FMCG Sector in India Poised for 7-9% Growth in 2024: ICICI Lombard Report

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FMCG Sector in India Set for Robust Growth in 2024: ICICI Lombard Report

Team FS

26/Jun/2024

Key Points:

Projected Growth: FMCG sector in India expected to expand by 7-9% in 2024 despite challenges like inflation and subdued consumer confidence.
Digital Transformation: Rise of online sales channels valued at US$ 20.38 billion highlights sector's adaptation to digital and D2C models.
Government Initiatives: Impact of Gati Shakti and Amrit Kaal Vision 2047 on sector stability and growth prospects.

The FMCG sector in India is poised for sustained growth in 2024, according to a recent report by ICICI Lombard General Insurance. Projected to expand by 7-9%, the sector remains a cornerstone of the economy with an economic footprint exceeding US$ 109.10 billion (Rs. 9.1 lakh crore). This growth comes amidst challenges such as inflationary pressures, varying consumer confidence levels, and employment fluctuations, underscoring the sector's resilience and adaptability.

Digital transformation is a pivotal driver within the FMCG industry, as evidenced by the rapid rise of online sales channels, valued at US$ 20.38 billion (Rs. 1.7 lakh crore). The proliferation of Direct-to-Consumer (D2C) models highlights the sector's agility in responding to evolving consumer preferences and market dynamics, particularly in the aftermath of the pandemic.

Following a challenging period post-pandemic, the FMCG sector showcased significant recovery in the latter half of 2023, characterized by robust volume and value growth. Rural markets played a crucial role in this resurgence, contributing significantly to the sector's overall performance and market expansion.

Government initiatives such as Gati Shakti and Amrit Kaal Vision 2047 have further strengthened the FMCG sector's foundation by enhancing infrastructure and logistics capabilities. These initiatives have contributed to a reduced risk index from 68 to 66, indicating improved market stability and growth prospects.

In conclusion, the FMCG sector in India is navigating uncertainties with resilience, leveraging digital advancements and government support to sustain growth momentum. As the sector continues to evolve, its strategic adaptation to digital platforms and consumer-centric models will play a pivotal role in driving economic growth, employment generation, and market expansion in the coming years.

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FMCG Sector in India Set for Robust Growth in 2024: ICICI Lombard Report

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