As per the reports of the consumer intelligence firm NielsenIQ, Indian FMCG Industry records growth at 9.4% for the last quarter ending March 2021 whereas its previous quarter growth stood at 7.3% (3rd Quarter). For both Foods and Non-Foods in the quarter, there was uniform growth.
“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,” commented Diptanshu Ray, NielsenIQ South Asia Lead Head. Registering positive growth of 2.2% in the last quarter in the Metro cities, it signaled an upward trend as compared to the declining trend of the previous two quarters.
Diptanshu further cautioned regarding the early second quarter bringing new dimensions due to extended lockdown and dynamic situations across the country.
Nielsen stated, “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”. Moreover, It expects that this year’s monsoon will be good, making it the third consecutive year of rural rejoice.
This will further have an add on effect on the earnings of agrarian households. Besides, there are other reasons also for this rising, rural centric schemes have played a wider role as a bigger outlay for MGNREGA, rise in wages and increase in MSP of key crops have been important in keeping FMCG consumption in rural markets increasing.
“We also saw the Large and medium-sized companies bouncing back in Rural India”, Nielsen further added.
Consumption growth was witnessed for both staple food categories such as Edible Oils and Packaged Tea and non staple food categories like Biscuits, Coffee, Cheese, Ketchup because of increased in-home consumption. “There are green shoots of personal care categories’ growth coming back while Snacking and Impulse Foods basket maintained growth trajectory,” Nielsen stated. On the other hand, the Non-Foods categories basket saw a downfall 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,” Nielsen reported.