FMCG sales, volumes rise in September quarter: NielsenIQ

New Delhi: India’s fast moving consumer goods (FMCG) industry reported a 9% year-on-year jump in September quarter sales and an 8.6% rise in volumes, indicating a positive pan-India consumption pattern, according to NIQ (NielsenIQ’s) FMCG Photo.

Rural markets are showing signs of recovery, with consumption picking up during the September quarter compared to a year ago, the researcher said on Tuesday. Urban markets are also maintaining a stable rate of consumption growth.

“The FMCG industry saw a further reduction in price growth from the last quarter and provided a much needed boost to the consumer’s spending power, this can be seen in the rural markets especially where there is an increase in consumption across categories. Overall, cooling inflation in the country due to base effects, reduction in recent unemployment figures, and LPG prices among other factors boosted the consumer’s willingness to spend,” said Satish Pillai, managing director, NIQ India.

At the pan-India level, both food and non-food categories contributed to the growth in consumption. In the third quarter of 2023, the food sector grew by 8.7% year on year, while non-food grew by 8.7% year on year. The growth was mainly due to products that fall under impulse categories such as salty snacks, chocolates and confectionery apart from biscuits, tea, coffee, etc.

“Impulse food categories continue to see strong growth, and we see growth recovery in habit-forming categories such as biscuits, tea, noodles, coffee, etc. after five quarters. An increase in consumer spending on discretionary categories such as personal care and home care products suggests that rural consumers are beginning to spend beyond essential categories. This change in spending could be attributed to easing inflationary pressures. This renewed optimism across the country for the festive season is well evident,” Roosevelt D’souza, head, customer success, NIQ India.

The numbers come amid the Christmas season which typically sees households spend more on packaged goods.

Within the retail sector, modern trade has seen strong double-digit consumption growth of 19.5%. Traditional trade is also on the rise, with consumption improving to 7.5% in the September quarter. The number of smaller pack sizes is higher in rural areas, and in urban markets, the demand for packs is on average positive, although there is always a preference towards larger packs.

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Updated: 07 November 2023, 01:20 PM IST

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