Summary:

During the July-September period, India's FMCG industry grew by 5.7% in value and 4.1% in volume, with prices rising by 1.5%. For the third consecutive quarter, rural volume growth outpaced urban growth, reaching 6%. Despite declining demand, the industry showed resilience, with steady value growth and moderate price increases. Small manufacturers outperformed large firms, while metropolitan markets saw moderate demand. Roosevelt D'Souza of NielsenIQ noted this shift in development trends.

NielsenIQ reported a sequential rebound in consumer demand, with urban demand increasing by 2.8% and rural demand rising to 6% from 5.2% in Q2 2024. In most regions, rural markets outpaced urban areas in growth. Packaged food consumption rose by 3.4%, while household products grew by 6%. Hindustan Unilever highlighted a slowdown in urban demand and a resurgence in rural areas, with price hikes anticipated due to rising crude palm oil prices. Small manufacturers surpassed larger competitors in terms of food volume growth.

Source: IBEF

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