Lockdowns lift FMCG consumption in Q1

Household consumption of FMCG products in AprilJune 2020 was the highest in the last two years, led by personal care items, a report said.

The fast-moving consumer goods (FMCG) industry registered a growth of 4.3% in volume and 8.5% in value terms in the lockdown-hit April-June quarter, as per the report by data, insights and consulting company Kantar.

Personal care segment witnessed a double-digit growth of 11.1%, while household care, which consists of products like detergents and surface cleaners, logged 4.6% growth.

"Volume-wise, FMCG has seen the best quarter in the last couple of years, growing at 4.3% on a strong growth in both personal care and household care...All sectors out-performed the 2019 performance," the report said.

Food and beverage (F&B) posted a mild growth of 3.7% in the April-June period.

"Within foods and beverages, foods have grown by a strong 5.7% but beverages have dropped by 19%, causing F&B to grow slower than the other sectors," it said.

Kantar Managing Director- South Asia, Worldpanel Division, K Ramakrishnan said, "Even with lockdown, this quarter has been the best quarter in the last couple of years in terms of growth. From a household purchases lens, FMCG overall seems fairly strong." "Growth has been similar in value and volume. These figures are all both urban and rural together. While out of home consumption may have seen a sharp drop, the household view is one of positive growth," he added.

In value terms, the FMCG industry reported 8.5% growth in the April-June quarter, compared to 6.4% in the corresponding period of 2019.

Personal care, which mainly consists of oral, personal cleansing and hair care products, reported 10.7% growth in value terms, while household care saw 12.1% growth and F&B grew by 7.2%.

"Value has only marginally outpaced volume at the FMCG level," it said.

Several FMCG companies have reported higher sales in the rural and semi-urban areas.