FMCG industry records 9.4% growth in Q4, rural areas continue to thrive and major cities recover

The Indian FMCG industry recorded a growth rate of 9.4 percent in the January-March 2021 quarter, which is driven by growth in consumption-driven and rising commodity prices, particularly basic, said data analyst Nielsen. The domestic market continued to operate at strong growth of 14.6 percent during this period and municipal markets registered positive growth after two quarters.

Fast market growth for Fast Moving Consumer Goods (FMCG) from traditional trading channels exceeded double-digit, while e-commerce growth slowed to one-quarter for the January-March quarter. “The FMCG industry in India has experienced a growth rate of 9.4 percent in the last quarter of March 2021 after a 7.3 percent growth in the previous quarter (October-December 2020), over the same quarter of last year,” said FMCG 2021 released by the NielsenIQ Retail Intelligence team.

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Commenting on it, NielsenIQ South Asia Leader Dadanshu Ray said: “This is supported by basic food, essential non-food and nutrition sectors. However, he also warns that the start of the second quarter could bring some size, as the situation is so strong nationwide.

“Now with the closure of traffic jams, and with the delivery of the last mile, the e-commerce channel will continue to be strong,” the report said. of the past year.
“Rural markets continue to build momentum – growing at 14.6% in the Mar quarter after 14.2% in December,” he said. In addition, Nielsen is expecting good rainfall this season, making it the third consecutive year for rural growth.

This has had a significant impact on the income of agricultural families and kept rural sentiment rising. In addition, rural centric schemes such as large-scale MGNREGA cuts, wage increases and MSP increases in essential crops have played a major role in keeping FMCG use in rural markets intensified.

“We have also seen large and medium-sized companies return to Rural India, he added. Referring to the increase in consumption for the quarter of January-March, Nielsen said it was similar to food and non-food.

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The food basket has gained momentum from rising prices – especially in basic categories such as edible fats and blended tea. Consumption growth has been proven at certain stages in the non-basic food sectors such as Biscuits, Coffee, Cheese, Ketchup due to increased domestic consumption.

“There are green shoots in the human care sector coming back while the Snacking and Impulse Foods basket keeps road growth,” he said. On the other hand, the basket of Non-Foods categories saw a dip in standard prices.

“This is due to the increase in the contribution of large packages to the consumer basket and the increase in consumer promotions in the categories of Essential Home Care and Personal Care,” it said.

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