India's FMCG Sector Shows Robust Growth in Q2 FY24: Report

New Delhi, Nov 8 (KNN) The FMCG industry in India experienced strong growth during the July-September quarter of FY24, driven by the ongoing recovery of rural markets and a reduction in inflation, according to data from NIQ released on Tuesday.

In the second quarter of FY24, the FMCG industry in India achieved a 9 per cent year-on-year (Y-o-Y) growth in terms of value, accompanied by an 8.6 per cent increase in sales volumes, reflecting favourable consumption trends nationwide. Within this quarter, rural markets saw a 6.4 per cent Y-o-Y growth in sales volumes, as reported by the research firm.

Within FMCG, both food and non-food categories grew at 8.7 per cent Y-o-Y in Q2FY24.

As per the report, the Rural markets are showing “signs of recovery”, with consumption picking up during the September quarter compared to the year-ago period. Urban markets, on the other hand, are maintaining “a stable rate of consumption growth.

Satish Pillai, managing director, NIQ India, said, “The FMCG industry has witnessed a further reduction in price growth from last quarter, which has given a necessary impetus to the spending power of the consumer. This is evident in rural markets, where there is an uptick in consumption across categories.”

“Overall, the cooling of inflation in the country fuelled by base effects, and the recent decline in unemployment figures and LPG prices, amongst other factors, have contributed to the willingness of the consumer to spend,” he said.

“Unlike other APAC (Asia-Pacific) markets, where subdued growth is driven by price hikes, the India story is all about higher consumption. Continuing the gradual trend observed in recent months, rural consumption is witnessing a positive trajectory,” said Roosevelt D’souza, lead, customer success, NIQ India. 

In rural markets, consumers are opting for smaller-sized packs, while in urban markets, there is a continued preference towards larger packs.

Modern trade witnessed a strong double-digit growth of 19.5 per cent in the quarter, while traditional trade was also on the rise with consumption improving to 7.5 per cent in the period, up from 6.2 per cent in April-June.

(KNN Bureau)