Fast-moving consumer goods (FMCG) sector grows 10.6% in December quarter: NielsenIQ

India’s packaged consumer goods sector experienced a 10.6% growth in sales during the October-December quarter, driven by increased demand in rural markets and higher prices for essential items like edible oil and wheat, according to NielsenIQ's Fast-moving consumer goods (FMCG) update. Despite a 3.3% average price hike due to ongoing inflationary pressures, overall volume sales increased by 7.1%. The festive demand played a significant role in boosting consumption, with small and local manufacturers outpacing larger FMCG companies in driving growth, thanks to consistent volume increases. 

Rural markets led the growth, with sales volume in these areas rising by 9.9% in the December quarter, up 5.7% from the previous quarter. In contrast, urban markets saw a modest 2.6% growth sequentially, continuing a trend where rural consumption outpaced urban demand. This rural dominance can be attributed to government employment schemes and agricultural support measures. The report highlights that rural India has grown twice as fast as urban India, which has struggled with a prolonged slowdown over the past four quarters. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.