NEW DELHI: While the FMCG industry has grown at 12.6% in Q3 2021 over the same period a year ago, rural India has seen a decline in consumption, according to a report.
NielsenIQ’s FMCG Snapshot for the September quarter shows there has been a slowdown in rural (9.4% value growth in Q3 2021) due to consumption, which has declined by 2.9%, although prices continue to grow.
The categories that show a slip were cooking medium, packaged grocery, hot beverages. In non-foods, fabric care, and personal care witnessed consumption decline.
On the other hand, food products like cooking mediums and Impulse foods, and non-food items — personal care and fabric care — are contributing to the uptick in Metros.
The food basket that contributes to 59% of the FMCG industry witnessed a double-digit growth driven by prices.
The report says, “Overall, the Indian FMCG industry witnessed significant price-led growth in the quarter on account of increasing commodity & raw material prices, and high fuel prices leading to higher transportation costs. This resulted in double-digit nominal growth, but a drop in consumption (volume) growth for the industry.”
Diptanshu Ray, NielsenIQ South Asia Lead, adds, “Though there continues to be pressure on the consumer, this is offset by the encouraging uptick seen in modern trade in the urban markets.”