FMCG sector grows 7.3% in December quarter, rural sales up 14.2%, says data firm Nielsen – Business News , Firstpost

The snapshot launched by NielsenIQ’s Retail Intelligence staff confirmed giant producers bouncing again and small ones clocking double-digit progress

New Delhi: The FMCG business in India has recorded a price progress of seven.Three p.c in October-December quarter helped by consumption-led restoration through the festive interval and improve in sales from conventional in addition to organised commerce, in line with data analytics firm Nielsen.

The metro market witnessed “significant recovery”, whereas rural India, which is performing effectively after a fast restoration from the pandemic, continued to be “buoyant” and witnessed double-digit progress through the quarter below assessment.

Large producers additionally bounced again with consumption-led progress through the quarter, whereas the small ones clocked double-digit progress amid rise in consumption, mentioned the FMCG Snapshot for This autumn 2020 launched by NielsenIQ’s Retail Intelligence staff.

NielsenIQ is part of international measurement and data analytics firm Nielsen.

“The Fast Moving Consumer Goods (FMCG) business in India, noticed a bounce again with a progress of seven.Three p.c in the quarter ending December 2020. This progress in Traditional commerce (Grocer, Chemist, Paan retailers and many others.) and Organised Trade (Modern Trade and Ecommerce) was pushed by consumption,” it mentioned.

The festive interval-led progress uptick in November, was sustained in December additionally, it added.

In 2020, the FMCG Industry had a price degrowth of two p.c.

In October-December quarter, merchandise akin to liquid rest room cleaning soap, antiseptic liquid, flooring cleaner, rest room cleaner in the ‘Hygiene & Immunity building’ classes continued a excessive-worth progress of 46 p.c in comparability to the corresponding quarter.

“The ‘home and personal care’ basket made a consumption-led restoration (5 p.c quantity progress vs 12 months in the past), whereas Food classes noticed a 10 p.c progress driving on increase in consumption in addition to a worth improve in some meals baskets,” it mentioned.

This progress restoration was widespread in the meals basket, together with ‘Staple Foods’ that grew 18 p.c in the December quarter, vs a 12 months in the past.

“While the Indian consumer has had a tough year, the last quarter of 2020 has seen a recovery in consumption as economic activities have started moving back to normalcy (opening up). The festive season brought a further boost to the sentiments and since then there has been a visible uptick in growth for the industry resulting in an increase in consumption across staples, and home and personal care,” mentioned NielsenIQ Lead, Retail Intelligence, India Diptanshu Ray.

The Indian metropolitans, with greater than 1,000,000 inhabitants, have come again into the optimistic progress zone after two quarters of decline and reported 0.eight p.c progress in October-December quarter.

While, rural markets continued to develop in double digits: accelerating to 14.2 p.c in the October-December quarter, from 10.6 p.c in the July-September quarter.

“This sharper recovery is on the back of favourable agricultural sector performance, government action towards rural employment generation, and as rural India had a lesser impact of the pandemic,” it added.

Large FMCG producers bounced again with consumption-led progress however small producers, having an annual sales turnover lower than Rs 100 crore, continued to exhibit double-digit progress of 16 p.c in the December quarter.

Meanwhile, e-commerce is stabilising at a consumption degree increased than pre-COVID. The e-commerce spurt is extra distinguished in the metros, it mentioned including that conventional commerce channels consolidated its share in the metro markets.

“Traditional trade channels continued their growth momentum in the December quarter (8 percent vs year ago), after a 3 percent growth it clocked in the Sep quarter. Within organised trade, Modern Trade channel has posted a strong recovery to (-) 2 percent in the December quarter, as against a (-) 15 percent in September quarter,” it added.

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