Rural Fast-Moving Consumer Goods (FMCG) market growth outpaces urban in Q4 FY25 as quick commerce sees growth

In Q4 FY25, rural markets continued to outperform urban markets in the Fast-Moving Consumer Goods (FMCG) sector, with leading players such as Dabur, Marico, and AWL Agri Business (formerly Adani Wilmar) highlighting stronger rural demand, particularly in food categories. Urban demand was subdued amid persistent food inflation, further impacting overall FMCG volume trends. Modern trade, electronic commerce (e-commerce), and quick commerce channels maintained strong momentum while traditional trade (Kirana stores) struggled; AWL Agri Business reported a 100% plus YoY growth in quick commerce sales, its best in two years, driven by better product assortment, availability, and strategic promotions.

Despite expecting a decline in Q4 revenue and a 150–175 basis points (bps) contraction in operating margins, Dabur remains optimistic for FY26, banking on easing inflation and a normal monsoon. Marico, which owns brands like Saffola and Parachute, observed stable demand trends and mixed performance across premium and mass urban segments. Both companies expect double-digit growth in international markets, with Dabur projecting robust performance in the Middle East and North Africa (MEN), Egypt, and Bangladesh, contributing nearly 25% of its total revenue. Marico's global operations saw constant currency growth in the mid-teens. Despite margin pressures, both firms remain committed to profitable growth through continued investments in brand-building, operational efficiencies, and go-to-market enhancements.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.