India’s FMCG industry recorded 9.4 per cent growth in the last quarter of FY21, helped by both volume-led expansion and value growth driven by increased prices of products, especially of staples, PTI said, quoting a new report from data analytics firm Nielsen.
“FMCG industry in India has built growth momentum by growing at 9.4 per cent in the quarter ending March 2021 after growing at 7.3 per cent in the previous quarter (October-December 2020), over the same quarter of the previous year,” said FMCG Snapshot for Q1 2021 released by NielsenIQ’s Retail Intelligence team.
Sales growth from the traditional trade channels jumped to double digits, while growth in e-commerce normalised down to single digits in the January-March quarter, Nielsen said. The rural market delivered strong growth of 14.6 per cent during the assessment period, while metro markets began registering positive metrics after the previous two quarters.
According to the report, metro cities registered a positive growth of 2.2 per cent in the January-March quarter after two-quarters of the declining trend versus the year-ago period.
“Rural markets continue to further build on the growth momentum – growing at 14.6 per cent in the January-March quarter after a 14.2 per cent growth it posted in the December quarter,” it said.
While consumption growth was uniform for both foods and non-foods, certain categories in non-staple Foods categories as well such as Biscuits, Coffee, Cheese, Ketchup displayed higher takeoff due of increased in-home consumption, Nielsen said.
Commenting on the findings, NielsenIQ South Asia Lead Diptanshu Ray told PTI: “FMCG growth was backed by staples, essential non-foods and indulgence categories.”
However, he also cautions that the beginning of the April-June quarter may bring some new shifts, as a resurgent Covid-19 pandemic disrupts markets across the country.
“Now that lockdowns have resurfaced, and with last-mile delivery boost up, the e-commerce channel will continue to be dynamic,” the report said.