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LATEST NEWS UPDATES | FMCG growth slows in Oct-Dec Quarter - Sharleen D'Souza

FMCG growth slows in Oct-Dec Quarter - Sharleen D'Souza

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published Published on Feb 3, 2023   modified Modified on Feb 3, 2023

- Business Standard

India’s fast-moving consumer goods (FMCG) sector grew at a slower pace of 7.6 per cent, in the October-December 2022 quarter, compared to the previous quarter as well as October-December 2021, Business Standard reported, citing data from market research firm NielsenIQ. Price growth has tapered and volumed remain weak. Price growth during the quarter was 7.9 per cent, lower than 9.9 per cent in the previous quarter.

FMCG firms were consistently increasing the prices of their goods in view of higher raw material costs. However, due to a decline in some raw material costs in recent months, companies have slowed down on price increases or taken price cuts in some cases. NielsenIQ noted a drop in price growth both in the rural and urban markets. However, urban volumes still grew by 1.6 per cent YoY in the quarter, while rural volumes remained in the negative (-2.8 per cent). In value terms, urban markets witnessed an increase of 9.2 per cent, and rural witnessed 5.1 per cent growth.

The food segment continued to witness volume growth, within which categories in staples and impulse remained positive. Non-food consumption continued to decline, and has witnessed lower volumes than pre-Covid levels in recent quarters. NielsenIQ said in its release that in non-food, there was a lean assortment at retail outlets, and stock levels were also lower. Manufacturers are also reducing promos for categories like washing powder, detergent bars, toilet soaps, shampoo, etc.

Among regions, northern parts of the country witnessed volume growth, of 0.1 per cent, after five quarters, while the east remained stable with volumes at 0.6 per cent. Western and southern regions continued to witness contraction in consumption. However, there were marginal improvements against the same period last year.

FMCG refers to products like soap, shampoo, beverages, etc that are sold quickly at a relatively low cost. 

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Sharleen D'Souza, Business Standard, 3 February, 2023, https://www.business-standard.com/article/economy-policy/fmcg-sector-slows-down-in-dec-quarter-as-price-growth-tapers-nielseniq-123020200661_1.html


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