Consumer cos expect volumes surge in 2024

Optimism buoyed by election-year prospects, as well as easing inflation

- Suneera Tandon

• Moderating inflation may help curb incessant price rise, allowing consumers to spend on a wider array of goods

Consumer goods, clothing, and liquor companies are cautiously optimistic about rising demand in FY25, riding on the optimism of an election year, amid signs of easing inflation. Despite a year of sluggish growth during 2023, optimism is high for increased sales of both essential and discretionary items.

Bizom’s retail intelligence platform data revealed a 2.1% jump in sales of fast-moving consumer goods (FMCG) between January and November, compared with a year ago, hinting at subdued demand for staples, beverages and personal care products. Even during the ongoing festive season, spending remained flat, with apparel retailers and liquor firms seeing "normal" consumer behaviour.

Companies anticipate an improvement in volumes of goods sold, buoyed by the general elections. Additionally, moderating inflation may help curb incessant price rise, allowing consumers to spend on a wider array of goods, said analysts.