NielsenIQ's Report Reveals a 9% Growth in India's FMCG Industry

According to data analytics firm NielsenIQ, the FMCG industry in India grew by 8.6% in the September quarter, which was aided by higher consumption as inflationary pressures eased. With price corrections, the FMCG industry logged 9% growth in value terms in July–September, a decrease from the previous quarters, it added.
 
According to the data by the firm, rural markets are also showing signs of recovery, with consumption increasing in this quarter compared to the third quarter of 2022. Rural growth, which turned positive in Q1 2023, was 6.4% in the July–September quarter, compared to 4% in the previous quarter and 3.6% in the same quarter last year. Meanwhile, urban markets maintained a consistent rate of consumption growth, with the same volume growth of 10.2% as the previous quarter.
 
Category-wise, it stated that on an all-India basis, both the food and non-food sectors are contributing to consumption growth, with non-food categories growing faster. Non-food categories grew 8.7 percent in Q3 2023 compared to the same period last year, up from 5.4 percent in Q2 2023. Food sector volume growth was 8.7 percent in Q3 2023 compared to the same period the previous year (up from 8.5 percent in Q2 2023). This expansion is primarily driven by products classified as impulse (such as salty snacks, chocolates, and confectionery) and habit-forming (such as biscuits, tea, and coffee, etc.).
 
This improvement in non-food categories can be attributed to an increase in rural consumption growth, which is expected to be 6.7% in Q3 2023. For the first time in rural areas, volume growth in personal care categories turned positive. The non-food sector in urban areas is also improving, with a growth rate of 10.4% in Q3 2023, up from 8.9% in Q2 2023, according to the report.