afaqs! news bureau

FMCG sector clocks 9.4 per cent growth in March quarter says NeilsenIQ

Staples, indulgence categories, and essential non-foods led the growth.

India's Fast Moving Consumer Goods (FMCG) industry in India has built growth momentum by growing at 9.4 per cent in the quarter ending March 2021 (JFM’21) after growing at 7.3 per cent in the previous quarter (OND’20), over the same quarter of the previous year says consumer intelligence firm NielsenIQ.

As per the consumer intelligence firm, there was uniform consumption growth for both Foods and Non-Foods in the JFM quarter.

Foods basket got a boost from the pricing uptick - mainly in staples categories like Edible Oils and Packaged Tea. Consumption growth witnessed for certain categories in non-staple Foods categories as well (e.g. Biscuits, Coffee, Cheese, Ketchup) because of increased in-home consumption.

On the other hand, the Non-Foods categories basket saw a dip in average pricing. This is due to the increased contribution of larger packs in the consumer basket and rise in consumer promotions in Essential Home Care and Personal Care categories.

While Metropolitan cities registered a positive growth (2.2%) in JFM’21, rural markets continue to further build on the growth momentum - growing at 14.6% in the March quarter, after a 14.2% growth it posted in the Dec quarter.

As per NeilsenIQ, traditional trade channels (TT) continued their growth momentum in the quarter ending in March (11% versus a year ago), after an 8% growth they clocked in the Dec quarter. On the other hand, E-commerce sales peak in the unlock quarter (JAS’20) tapered off; the channel is settling into new normal growth.

“The recovery in Indian FMCG industry growth that we had seen in the last quarter has strengthened further in JFM’21. This is backed up by staples, essential non-foods and indulgence categories. However, the beginning of the second quarter may bring some new dimensions, as the situation, is dynamic across the country,” said Diptanshu Ray, South Asia Lead, NielsenIQ.