ITC FMCG consumer spend FY25 reached a new high as consumer spending on the conglomerate’s FMCG products rose 4.6% to ₹34,000 crore in the financial year 2024–25, compared to ₹32,500 crore in FY24
📊 Highlights of ITC’s FY25 Performance
- 100 new product launches across health, hygiene, convenience, and indulgence segments powered growth
- Reach expanded to 26 crore households, up from 25 crore in FY24
- Digital and modern trade now account for 31% of FMCG sales
Despite the increase in consumer spending, this growth marks the slowest pace in over a decade for ITC’s FMCG business
🌾 What’s Driving the Pause in Growth?
- Macro slowdown & inflation: Rising input costs (edible oil, wheat, cocoa) weighed on margins
- Competitive intensity: Regional players intensified competition in key categories
🛍 Strategic Advantages & Long-Term Strengths
- Robust brand portfolio: Flagship brands like Aashirvaad (atta), Bingo! (snacks), Sunfeast (biscuits), and Classmate (stationery) continue to lead their segments reuters
- Omnichannel push: Enhanced digital presence and modern trade penetration driving sustained market reach
- Rural revival: Broader FMCG industry trends show rural recovery and larger grocery baskets, which support ITC’s rural distribution strategy .
📈 Context Within Industry Trends
- While consumer spending grew, ITC’s growth lagged relative to broader FMCG trends—Kantar noted larger grocery baskets and increased consumer expenditures across India in FY25.
- Analysts from Anand Rathi remain upbeat on FMCG, citing rural recovery, falling input costs, and rising premium consumer behaviour
🔍 What This Means for ITC Investors & Consumers
- Momentum: ITC remains a strong FMCG player, but growth is moderating.
- Opportunities: Leverage lifestyle upgrades, premiumisation, and rural demand to reignite growth.
- Watchlist: Keep an eye on cost control, pricing strategies, and digital channel expansion to sustain gains.
✅ FY25 vs FY24 – Snapshot
| Metric | FY24 | FY25 (Projected) |
|---|---|---|
| Consumer spend (₹ cr) | 32,500 | 34,000 (+4.6%) |
| Household reach (cr) | 25 | 26 |
| Growth rate | ~12% (FY24) | ~4.6% (FY25) |
| New product launches | — | 100+ |
| Digital + Modern trade | ~31% | ~31% |
🔮 Outlook Ahead
ITC has delivered a record ₹34,000 cr consumer spend in FY25, maintaining strong household penetration and product innovation. However, as growth slows, the company must focus on premiumisation, supply-chain efficiency, and category expansion to drive the next wave of growth.
