FMCG industry grows 7.3%, rural sales up 14.2%: Nielsen
The FMCG industry in India has recorded a value growth of 7.3% in OctoberDecember quarter helped by consumption-led recovery during the festive period and increase in sales from traditional as well as organised trade, according to data analytics firm Nielsen.
The metro market witnessed "significant recovery", while rural India, which is performing well after a quick recovery from the pandemic, continued to be "buoyant" and witnessed double-digit growth during the quarter under review.
Large manufacturers also bounced back with consumption-led growth during the quarter, while the small ones clocked doubledigit growth amid rise in consumption, said the FMCG Snapshot for Q4 2020 released by NielsenIQ's Retail Intelligence team.
"The FMCG industry in India, saw a bounce back with a growth of 7.3% in the quarter ending December 2020. This growth in Traditional trade (Grocer, Chemist, Paan shops etc.) and Organised Trade (Modern Trade and Ecommerce) was driven by consumption," it said.
The festive period-led growth uptick in November, was sustained in December also, it added.
In October-December quarter, products such as liquid toilet soap, antiseptic liquid, floor cleaner, toilet cleaner in the 'Hygiene & Immunity building' categories continued a highvalue growth of 46% versus corresponding quarter.
"The 'home and personal care' basket made a consumption-led recovery (5% volume growth vs year ago), while Food categories saw a 10% growth riding on boost in consumption as well as a price increase in some food baskets," it said.
This growth recovery was widespread in the food basket, including ' Staple Foods' that grew 18% in the December quarter, vs a year ago.
While, rural markets continued to grow in double digits - accelerating to 14.2% in the October-December quarter, from 10.6% in the JulySeptember quarter. "This sharper recovery is on the back of favourable agricultural sector performance, government action towards rural employment generation, and as rural India had a lesser impact of the pandemic," it added.