FMCG firms count on revival in urban demand by FY26

SLOWDOWN LIKELY TO PERSIST IN NEXT TWO QUARTERS

- VIVEAT SUSAN PINTO

DOMESTIC CONSUMER GOODS companies expect market growth rates to improve by FY26 as the urban slowdown pangs may subside by then, executives at top FMCG firms said. Companies also expect mid-single digit price-led growth to drive the overall topline growth. This would come after multiple quarters of pricing decline due to benign commodity costs on the non-food front in the current fiscal.

"FY26 should be better than FY25 as the overall consumer goods market is likely to stabilise, especially in urban areas, as slowdown concerns reduce. There is likely to be some pain visible in the December and March quarters of FY25 as demand has been weak. After that, market growth rates, both in FMCG as well as paints, should improve, led by urban and rural areas," Abhijit Roy, MD & CEO, Berger Paints, said.

Roy was speaking on the sidelines of the CII National FMCG Summit held in Mumbai on Wednesday. His views were echoed by companies such as Pidilite, Britannia and ITC.