FMCG consumption recovers 4% in FY25, signaling sustained spending despite experience economy surge

The average monthly spending in the Consumer Durables sector surged by 72% in FY25, driven by rising preference for home ownership and the need to furnish new homes, following a 6% increase in FY24, as per the report.

By  Storyboard18| May 6, 2025 12:34 PM
Signaling a continued recovery after a -22% slump in FY23, FMCG sector saw a 4% increase in FY25 consumption, suggesting a secular trend of sustained spending on goods despite rising interest in the experience economy

CMS Info Systems (CMS), released the CMS Consumption Report 2025 which highlights how consumption patterns surged across sectors. Anush Raghavan, President, Cash Management Solutions, CMS Info Systems said, “The third edition of the CMS Consumption Report, titled ‘India’s Consumption Story 2025,’ highlights cash-led consumption trends and emerging hotspots across India. Powered by our proprietary CMS Cash Index™ (CCI), the report is based on insights from 1,46,000 business points—where CMS services every second ATM and every third organized retail outlet in the country. The findings reveal compelling trends that underscore India’s ongoing consumption boom, offering in-depth sectoral and state-level analysis of domestic spending patterns.”

Key takeaways from the CMS Consumption Report 2025 are:

• Average monthly spending in the Consumer Durables sector surged by 72% in FY25, driven by rising preference for home ownership and the need to furnish new homes, following a 6% increase in FY24.

• Growing premiumization, the continued need for brick and mortar, especially while purchasing premium products, boosted spending in Multi-brand Outlets, that saw a 12% increase in FY25 after a -29% decline in FY24.

• Signaling a continued recovery after a -22% slump in FY23, FMCG sector saw a 4% increase in FY25 consumption, suggesting a secular trend of sustained spending on goods despite rising interest in the experience economy

• With INR 1.3 cr average cash dispensed per ATM in India, FY25 saw 5 states of North India as cash-led consumption hotspots with Bihar, Himachal Pradesh & Chhattisgarh being new entrants for the first time last 3 years.

• While FY25 saw an uptick in average ticket size of ATM withdrawals every month, October’24, January’25, February’25, and March’25 witnessed the highest growth at 4%, 4%, 5%, and 6%, respectively.

First Published onMay 6, 2025 12:11 PM

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