Rural demand lifts fast-moving consumer goods (FMCG) sector to 5.7% growth in July-September: NielsenIQ
- IBEF
- November 8, 2024
India's fast-moving consumer goods (FMCG) sector witnessed a 5.7% growth by value and a 4.1% growth in volume during the July-September quarter, as consumer intelligence firm NielsenIQ reported. Price growth was recorded at 1.5%, with rural volume growth surpassing urban growth for the third consecutive quarter, reaching 6%. Despite softening consumption in both regions, the FMCG industry demonstrated resilience with steady value growth and marginal price increases. Rural markets continued to lead in volume growth, even as urban markets showed moderating demand. "Small manufacturers have rebounded after recent declines, while major players are trailing in value growth," said Head of Commercial – India at NielsenIQ, Mr. Roosevelt D’souza.
NielsenIQ also highlighted a sequential recovery in consumer demand, with urban demand growing by 2.8% and rural demand increasing to 6% from 5.2% in Q2 2024. Rural markets outpaced urban volume growth in most regions. Consumption of packaged food items saw a 3.4% increase compared to 2.1% in the previous quarter, despite rising prices of edible oils, packaged atta (wheat flour), and spices. Household products maintained a stable 6% growth. Hindustan Unilever Ltd (HUL) noted the moderating growth in urban demand and the gradual recovery in rural markets. The company also mentioned rising crude palm oil prices would lead to calibrated price hikes. Small manufacturers saw a sharp recovery in volume growth in food, outpacing larger players, who showed slower value growth compared to Q1 2024.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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