FMCG Demand Rebounds Post-GST with Premiumisation & Price Elasticity: ICICI Securities

• FMCG demand is improving post-GST due to price resets, stronger discretionary spending, and early signs of premiumisation.
• Discretionary categories show a clear demand uptick, with companies seeing stronger volumes after price reductions.
• Consumers are moving towards premium brands in categories like soaps as certain price points become more attractive.
• The paints sector maintains high competitive intensity, but there's optimism for a stronger cycle after two weak years (FY24, FY25).
• ICICI Securities remains positive on Titan and Nestle, citing consistent growth focus and urban demand recovery potential.

Why It Matters: FMCG demand rise post-GST signals changing consumer habits and market recovery.