May 7th 2024.
The latest report from consumer intelligence firm NielsenIQ has revealed that the FMCG industry in India experienced a 6.5% growth in volume during the first quarter of 2024. This growth was largely driven by consumption trends in both the food and non-food sectors, with non-food witnessing almost double the growth compared to food.
One interesting trend highlighted in the report is that rural consumption has surpassed urban for the first time in five quarters. This shift can be attributed to the popularity of larger pack sizes in the home and personal care categories, which have outperformed food categories.
Roosevelt Dsouza, the Head of Customer Success India at NielsenIQ, commented on this development, saying, "The FMCG industry's growth continues to be driven by consumption trends in Q1 2024, with rural areas surpassing urban growth for the first time in five quarters." He also noted that while food categories see higher unit purchases, the growth in home and personal care is largely driven by larger pack sizes.
The report also pointed out a slowdown in urban and modern trade, with an uptick in rural and traditional trade. In fact, rural consumption has gradually picked up pace and surpassed urban in Q1 2024. Meanwhile, modern trade continues to exhibit strong double-digit volume growth, while traditional trade has remained stable.
In terms of contribution to the overall growth in consumption, both food and non-food sectors played a significant role. However, non-food saw almost double the growth compared to food, with more large packs being purchased in non-food categories.
Looking at specific sectors, the report noted a slowdown in the food sector, with staples being the primary reason for this decline. On the other hand, there has been an improvement in non-food categories, particularly in rural areas, where personal care and home care categories have seen a growth rate of 12.8% in Q1 2024.
In urban areas, the non-food sector is witnessing increasing consumption in the personal care category, with a growth rate of 8.4% in Q1 2024 compared to 5.8% in Q4 2023. Additionally, the report highlighted that within the FMCG industry, larger players continue to demonstrate stronger performance compared to smaller ones. However, smaller manufacturers have seen higher volume growth rates in non-food categories over the last two quarters, which could be due to challenges in keeping prices stable in the food sector.
Overall, the report paints a picture of a growing FMCG industry in India, driven by consumption trends in both rural and urban areas, with a notable shift towards larger pack sizes and non-food categories.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]
[Generative AI is experimental.]
