New Delhi: The Indian FMCG industry experienced 6.5 per cent growth in volume terms nationally in the January-March period of 2024, with rural consumption exceeding urban for the first time in five quarters, according to consumer intelligence firm NielsenIQ.
NielsenIQ (NIQ) said in its quarterly snapshot for the first quarter of 2024 that both food and non-food sectors contributed to consumption growth in the first quarter of 2024, but non-food sectors had almost twice the growth as food. Was seen.
The FMCG industry experienced a growth of 6.6 per cent in value, attributed to a growth of 6.5 per cent in volume at the all-India level. It said volume growth in the quarter was higher than Q1 2023, which stood at 3.1 percent.
Roosevelt D'Souza, Head of Customer Success India, NIQ, said, “The growth of the FMCG industry has been driven by consumption trends in Q12024, with the rural sector outpacing urban growth for the first time in five quarters.,
Notably, D'Souza said household and personal care (HPC) categories have outperformed food categories. While food categories have seen higher unit purchases, growth in HPC is largely driven by the popularity of larger pack sizes.
The quarterly snapshot showed that there is a slowdown in consumption in urban and modern trade, while there is a pickup in rural and traditional trade.
"Rural consumption growth has gradually picked up pace and outpaced urban (growth) in Q12024. Urban consumer demand is witnessing a sequential decline, at 5.7 per cent in the quarter," the NIQ said.,
Within the retail sector, modern trade is displaying strong double-digit volume growth of 14.7 per cent. Traditional trade, on the other hand, saw steady growth, with volumes registering a growth of 5.6 per cent in Q4 2024 compared to 5.3 per cent in the previous quarter (Q4 2023), indicating that traditional retail channels continue to hold their ground. Has happened.
According to the snapshot, at the all-India level, both food and non-food sectors contributed to the growth in consumption, but non-food saw almost double the growth compared to food.
"More units were purchased in food categories compared to the same period last year, while more larger packs were purchased in non-food categories," it said.
In Q1 2024, volume growth in the food sector was 4.8 per cent over Q4 2023, down from 5.3 per cent in Q4 2023.This slowdown in growth is mainly due to products falling under staples.
In contrast, non-food categories have improved, with consumption reaching 11.1 per cent in Q1 2024 compared to the previous year, an increase from the 9.6 per cent recorded in Q4 2023.
It said, “This improvement can be attributed to growth in rural areas, which recorded a growth rate of 12.8 percent in Q1 2024 (compared to 9.8 percent in Q4 2023); this includes personal care and Includes home care categories."
In urban areas, consumption in the non-food sector is growing and in personal care is expected to grow by 8.4 per cent in Q1 2024 compared to 5.8 per cent in Q1 2023.
NIQ reported that larger players in the FMCG industry continue to perform stronger than smaller players.However, smaller manufacturers have seen higher volume growth rates in non-food categories than larger companies in the last two quarters.
“This may be because smaller players face challenges in keeping prices stable in the food sector, while non-food categories, have experienced higher volume growth with significant price increases,” it said.
NielsenIQ (NIQ) said in its quarterly snapshot for the first quarter of 2024 that both food and non-food sectors contributed to consumption growth in the first quarter of 2024, but non-food sectors had almost twice the growth as food. Was seen.
The FMCG industry experienced a growth of 6.6 per cent in value, attributed to a growth of 6.5 per cent in volume at the all-India level. It said volume growth in the quarter was higher than Q1 2023, which stood at 3.1 percent.
Roosevelt D'Souza, Head of Customer Success India, NIQ, said, “The growth of the FMCG industry has been driven by consumption trends in Q12024, with the rural sector outpacing urban growth for the first time in five quarters.,
Notably, D'Souza said household and personal care (HPC) categories have outperformed food categories. While food categories have seen higher unit purchases, growth in HPC is largely driven by the popularity of larger pack sizes.
The quarterly snapshot showed that there is a slowdown in consumption in urban and modern trade, while there is a pickup in rural and traditional trade.
"Rural consumption growth has gradually picked up pace and outpaced urban (growth) in Q12024. Urban consumer demand is witnessing a sequential decline, at 5.7 per cent in the quarter," the NIQ said.,
Within the retail sector, modern trade is displaying strong double-digit volume growth of 14.7 per cent. Traditional trade, on the other hand, saw steady growth, with volumes registering a growth of 5.6 per cent in Q4 2024 compared to 5.3 per cent in the previous quarter (Q4 2023), indicating that traditional retail channels continue to hold their ground. Has happened.
According to the snapshot, at the all-India level, both food and non-food sectors contributed to the growth in consumption, but non-food saw almost double the growth compared to food.
"More units were purchased in food categories compared to the same period last year, while more larger packs were purchased in non-food categories," it said.
In Q1 2024, volume growth in the food sector was 4.8 per cent over Q4 2023, down from 5.3 per cent in Q4 2023.This slowdown in growth is mainly due to products falling under staples.
In contrast, non-food categories have improved, with consumption reaching 11.1 per cent in Q1 2024 compared to the previous year, an increase from the 9.6 per cent recorded in Q4 2023.
It said, “This improvement can be attributed to growth in rural areas, which recorded a growth rate of 12.8 percent in Q1 2024 (compared to 9.8 percent in Q4 2023); this includes personal care and Includes home care categories."
In urban areas, consumption in the non-food sector is growing and in personal care is expected to grow by 8.4 per cent in Q1 2024 compared to 5.8 per cent in Q1 2023.
NIQ reported that larger players in the FMCG industry continue to perform stronger than smaller players.However, smaller manufacturers have seen higher volume growth rates in non-food categories than larger companies in the last two quarters.
“This may be because smaller players face challenges in keeping prices stable in the food sector, while non-food categories, have experienced higher volume growth with significant price increases,” it said.
