FMCG industry records 6.4% volume growth, rural & urban consumption gap narrows, says NielsenIQ
During the October-December quarter, the volume of the Indian Fast-Moving Consumer Goods (FMCG) industry exhibited a year-on-year growth of 6.4%, as reported by analytics firm NielsenIQ. This increase in consumption was observed in both urban and rural areas, marking a notable uptick in the sector. NielsenIQ's report also emphasized a noteworthy reduction in the consumption gap between urban and rural markets, a trend observed for the first time in 2023.
The FMCG industry, buoyed by higher volume and a resurgence in rural markets, achieved a 6% growth in value terms during this period, according to the report. Looking ahead to 2024, the Indian FMCG industry is anticipated to grow between 4.5% and 6.5%. This positive outlook is attributed to the sector's strength and the overall health of the Indian economy.
However, it is noteworthy that the volume growth experienced a sequential decline in the October-December quarter compared to the previous quarter, primarily due to a moderation in consumption within the FMCG sector. The report highlights a sequential slowdown in volume growth in rural markets, where consumption slightly declined in Q4'23 compared to Q3'23. Moreover, the decline is more pronounced in urban markets, as NielsenIQ's India FMCG Quarterly Snapshot indicates.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.