Consumers spent over ₹34,000 crore on ITC’s non-cigarette fast-moving consumer goods (FMCG) products in the financial year 2024–25 (FY25), the company revealed in its latest annual report.
This marks a 4.6% growth in consumer spend compared to nearly ₹32,500 crore in FY24.
Over 260 million households reached
ITC stated that its over 25 ‘world-class’ Indian brands, largely built through organic growth, reached more than 260 million Indian households.
These brands, spanning categories such as packaged foods, personal care, hygiene, and home products, contributed to the ₹34,000 crore consumer spend in FY25.
The company’s FMCG segment revenue stood at ₹21,981.57 crore, while EBITDA (earnings before interest, taxes, depreciation, and amortisation) reached ₹2,163.92 crore.
FMCG growth slows amid sector challenges
Though ITC recorded growth in FY25, the 4.6% increase in consumer spend is notably lower than in previous years.
FY24 witnessed 12.1% growth, while FY23 saw 20.8% as demand rebounded post-pandemic.
In FY22, the figure was above 9.1%.
The company attributed the slower growth to inflationary pressures, which impacted household savings and urban consumption.
However, rural demand remained relatively resilient, providing a cushion amid subdued market conditions.
Company expects recovery ahead
Looking ahead, ITC expressed optimism about a gradual revival in consumption.
The company expects rural demand to strengthen, supported by a good monsoon and increased government spending.
Urban demand, it said, may also improve as inflation stabilises, interest rates decline, and tax cuts from the Union Budget raise disposable income.
ITC believes a combination of capital expenditure pickup, RBI-led liquidity support, and fiscal stimulus will support overall FMCG growth in the coming quarters.
Despite market headwinds, ITC launched 100 new FMCG products during FY25.
These were centred on themes such as health and nutrition, hygiene, protection and care, convenience, and indulgence.
Strategy to accelerate FMCG expansion
ITC reaffirmed its plan to rapidly scale up its FMCG business through three main growth platforms:
- Fortifying core brands
- Exploring adjacent value-added categories
- Nurturing new growth vectors
The company also emphasised multi-dimensional interventions, including strategic acquisitions in high-growth and future-facing categories, to boost competitiveness and market presence in the FMCG space.
As ITC continues to expand beyond its traditional cigarette business, the company is betting on brand strength, innovation, and consumer-centric strategies to drive sustained growth in India’s evolving FMCG landscape.
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