FMCG Industry grows 7.3% in October-December, rural sales up 14.2%

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The FMCG industry in India has recorded value growth of 7.3% in the October-December quarter helped by consumption-led recovery during the festive period and an increase in sales from traditional as well as organised trade, according to data analytics firm Nielsen.

The metro market witnessed “significant recovery”, while rural India, which is performing well after a quick recovery from the pandemic, continued to be “buoyant” and witnessed double-digit growth during the quarter under review.

Large manufacturers also bounced back with consumption-led growth during the quarter, while the small ones clocked double-digit growth amid the rise in consumption, said the FMCG Snapshot for Q4 2020 released by NielseniIQ’s Retail Intelligence team.

NielsenIQ is a part of global measurement and data analytics company Nielsen. The Fast-moving Consumer Goods (FMCG) industry in India saw a bounce back with a growth of 7.3% in the quarter ending December 2020.

In 2020, the FMCG Industry had value degrowth of 2%. In the October-December quarter, products such as liquid toilet soap, antiseptic liquid, floor cleaner, toilet cleaner in the Hygiene and Immunity building’ categories continue a high-value growth of 46% in comparison to the corresponding quarter.

This growth recovery was widespread in the food basket, including Staple Foods’ that grew 18% in the December quarter, vs a year ago. While the Indian consumer has had a tough year, the last quarter of 2020 has seen a recovery in consumption as economic activities have started moving back to normalcy.

“The festive season brought a further boost to the sentiments and since then there has been a visible uptick in growth for the industry resulting in an increase in consumption across staples, and home, and personal care,” said NielsenIQ Lead, Retail Intelligence India, Diptanshu Ray.

The Indian metropolitans, with more than a million populations, have come back into the positive growth zone after two-quarters of decline and reported 0.8% growth in the October-December quarter. This sharper recovery is on the back of favourable agricultural sector performance, government action towards rural employment generation, and as rural India had a lesser impact of the pandemic, it added.

Large FMCG manufacturers bounced back with consumption-led growth but small manufacturers, having an annual sales turnover of less than Rs. 100 crore, continued to exhibit double-digit growth of 16% in the December quarter.

Meanwhile, e-commerce is stabilising at a consumption level higher than pre-COVID. The e-commerce spurt is more prominent in the metros, it said adding that traditional trade channels consolidated thier share in the metro markets.

Traditional trade channels continued their growth momentum in the December quarter after a 3% growth it clocked in the September quarter.



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