FMCG Demand Stabilizes Post-GST Reset, But Recovery Uneven

• FMCG consumption grew through November and December, but growth nature changed after GST 2.0 rollout.
• Tax changes led to inventory clearing and restocking of basic products, driving consumption-led growth.
• October–December quarter saw lower year-on-year value growth due to price cuts, with growth primarily volume-driven.
• Benefits of GST cuts passed to consumers, but demand response has been limited; price elasticity not seen short-term.
• Rising competition among quick commerce, e-commerce, and modern trade; private labels gaining share online.

Why It Matters: FMCG demand stabilized post-GST changes with volume-driven growth, but recovery remains uneven across categories.