THE Indian FMCG industry has recorded a 9.4 per cent growth in the January-March quarter of 2021, helped by a consumption-led growth and value growth by increased prices of products, especially of staples, said data analytics firm Nielsen.
The rural market continued to perform with strong growth of 14.6 per cent during the period and the metro markets have registered a positive growth after two quarters. Fast Moving Consumer Goods (FMCG) industry sales growth from the traditional trade channels jumped to double digits, while growth in e-commerce normalised down to single digits in the January-March quarter.
“FMCG industry in India has built growth momentum by growing at 9.4 per cent in the quarter ending March 2021 after growing at 7.3 per cent in the previous quarter (October-December 2020), over the same quarter of the previous year,” said FMCG Snapshot for Q1 2021 released by NielsenIQ’s Retail Intelligence team.
Commenting on it, NielsenIQ South Asia Lead Diptanshu Ray said: “This is backed up by staples, essential non-foods and indulgence categories.” “Now that lockdowns have resurfaced, and with last-mile delivery boost up, the e-commerce channel will continue to be dynamic,” it said.
According to the report, the metro cities have registered a positive growth of 2.2 per cent in the January-March quarter after two-quarters of the declining trend versus the year-ago period. “Rural markets continue to further build on the growth momentum - growing at 14.6 per cent in the Mar quarter after a 14.2 per cent growth it posted in the Dec quarter,” it said.
Moreover, Nielsen expects a good expected monsoon this season, making it the third consecutive year of rural rejoice.