FMCG industry sees 6.5% growth; rural demand surpasses urban: NielsenIQ

The FMCG industry in India recorded a notable 6.5% growth in volume during the January-March 2024 period, as revealed by NielsenIQ. A significant highlight was the rural sector surpassing urban consumption for the first time in five quarters, indicating a shift in consumption dynamics.

The food and non-food sectors contributed to this growth, with non-food sectors experiencing almost double the growth rate compared to food. This growth, translating to a 6.6% increase in industry value, reflects a noteworthy uptick from the previous year. NIQ Head of Customer Success India, Mr. Roosevelt Dsouza, underscored the pivotal role of rural areas in driving this growth, particularly emphasizing the outperformance of home and personal care categories. Despite a slowdown in urban and modern trade channels, traditional retail channels demonstrated resilience, suggesting evolving consumption patterns and opportunities in the FMCG sector.

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