FMCG industry logs 8.6% volume growth in Sept
Helped by higher consumption as the inflationary pressure eased: Report
image for illustrative purpose
New Delhi The FMCG industry in India had an overall 8.6 per cent volume growth in September quarter, helped by higher consumption as the inflationary pressure eased, according to a report by data analytics firm NielsenIQ.
With correction in prices, the FMCG industry logged 9 per cent growth in value terms in July-September (Q3), reducing from the preceding quarters, it added. When inflation was at a record high, the FMCG industry had a high price-led growth in the last 5-6 quarters, though the volume was under stress. However, the trend has started reversing with the cooling of commodity prices. Besides, the rural market, which has been facing a consumption slowdown for the last several quarters, is showing signs of recovery, while the urban market is maintaining a “stable rate of growth”, said the latest NielsenIQ’s FMCG Quarterly snapshot. Smaller-sized packs are having higher offtake in the rural market, while in urban markets average pack sizes turn positive, though there is a continued preference towards larger packs, it added. “The FMCG industry has witnessed a further reduction in price growth from last quarter and has given a necessary impetus to the spending power of the consumer, this is evident in rural markets in particular where there is an uptick in consumption across categories,” said NIQ India Managing Director Satish Pillai.
