FMCG Growth Slows in June Quarter: Rural Outpaces Urban - NielsenIQ
By Rediff Money Desk, New Delhi Aug 08, 2024 18:04
FMCG volume growth slowed to 3.8% in Q2 2024 due to macroeconomic headwinds, with rural markets outperforming urban. NielsenIQ report highlights key trends in food, non-food categories and modern vs traditional trade.
![FMCG Growth Slows in June Quarter: Rural Outpaces Urban - NielsenIQ](https://im.rediff.com/money/2023/jan/04fmcg.jpg)
Photograph: Niharika Kulkarni/Reuters
New Delhi, Aug 8 (PTI) The FMCG industry's volume growth slowed to 3.8 per cent in June quarter 2024 due to macroeconomic headwinds which impacted the staple food categories, including packaged salt, wheat flour and palm oil, according to a report by data analytics firm NielsenIQ.
The industry saw a volume growth of 7.5 per cent in June quarter 2023 and and 6.5 per cent in March quarter 2024.
"Urban consumption growth dips to 2.8 per cent from 5.7 per cent in Q1'24 while Rural growth is at 5.2 per cent vs 7.6 per cent in the last quarter. However, rural outpaces urban in most parts of India in terms of volume growth," it said.
Modern Trade, which includes supermarkets, hypermarkets, and large-format stores continues to exhibit double-digit volume growth at 10.9 per cent year-on-year. However, it was slower as compared to the March quarter.
Volumes decelerated for traditional trade (such as Kirana stores) registering 3.1 per cent growth in Q2'24 (June quarter) compared to 5.6 per cent in the previous quarter, it added.
The FMCG consumption growth has been primarily impacted by the food sector, with growth at 2.4 per cent in June quarter compared to 4.8 per cent in March quarter, the report added.
"This moderation in volume growth is attributed to staple categories - packaged salt, packaged atta, and palm oil," it said.
In non-food categories, the volume growth was 7.6 per cent in June quarter 2024 compared to last year. Sequentially, it dropped from 11.1 per cent.
"In urban markets, Personal Care categories are witnessing a volume growth at 5.2 per cent in Q22024, while in rural it is resting at 8.3 per cent," it said.
In rural, high contributing categories Laundry and Utensil cleaners within Homecare witnessed slow consumption.
In June quarter, summer-specific categories such as soft drinks, packaged drinking water, prickly heat powder, and glucose powder reported strong growth.
"Soft drinks grew 2x faster than FMCG, however, experienced a volume growth at 9.2 per cent in Q2'24," it said.
Moreover, in the FMCG industry, large players continued to demonstrate stronger performance compared to small mid-players, and giants.
"Small players face challenges in keeping prices stable, thereby impacting their volumes," it said.
The industry saw a volume growth of 7.5 per cent in June quarter 2023 and and 6.5 per cent in March quarter 2024.
"Urban consumption growth dips to 2.8 per cent from 5.7 per cent in Q1'24 while Rural growth is at 5.2 per cent vs 7.6 per cent in the last quarter. However, rural outpaces urban in most parts of India in terms of volume growth," it said.
Modern Trade, which includes supermarkets, hypermarkets, and large-format stores continues to exhibit double-digit volume growth at 10.9 per cent year-on-year. However, it was slower as compared to the March quarter.
Volumes decelerated for traditional trade (such as Kirana stores) registering 3.1 per cent growth in Q2'24 (June quarter) compared to 5.6 per cent in the previous quarter, it added.
The FMCG consumption growth has been primarily impacted by the food sector, with growth at 2.4 per cent in June quarter compared to 4.8 per cent in March quarter, the report added.
"This moderation in volume growth is attributed to staple categories - packaged salt, packaged atta, and palm oil," it said.
In non-food categories, the volume growth was 7.6 per cent in June quarter 2024 compared to last year. Sequentially, it dropped from 11.1 per cent.
"In urban markets, Personal Care categories are witnessing a volume growth at 5.2 per cent in Q22024, while in rural it is resting at 8.3 per cent," it said.
In rural, high contributing categories Laundry and Utensil cleaners within Homecare witnessed slow consumption.
In June quarter, summer-specific categories such as soft drinks, packaged drinking water, prickly heat powder, and glucose powder reported strong growth.
"Soft drinks grew 2x faster than FMCG, however, experienced a volume growth at 9.2 per cent in Q2'24," it said.
Moreover, in the FMCG industry, large players continued to demonstrate stronger performance compared to small mid-players, and giants.
"Small players face challenges in keeping prices stable, thereby impacting their volumes," it said.
Source: PTI
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- GTL Infrastructure
- 2.74 (+ 2.62)
- 84886833
- Srestha Finvest
- 2.24 (+ 4.67)
- 34707853
- Ola Electric Mobilit
- 132.76 (+ 19.99)
- 27685743
- Suzlon Energy Ltd.
- 79.93 (+ 4.10)
- 27308498
- IFL Enterprises
- 1.22 (+ 4.27)
- 24757806
MORE NEWS
![Sebi Eases...](https://im.rediff.com/80-80/money/2024/aug/10sebi1.jpg)
Sebi Eases Compliance for Listed NCDs - New...
Sebi proposes amendments to simplify compliance requirements for entities with listed...
![Chandrasekaran:...](https://im.rediff.com/80-80/news/2018/jan/04modi.jpg)
Chandrasekaran: Learn From Indian Wisdom &...
Tata Group Chairman N Chandrasekaran emphasizes the importance of learning from Indian...
JSW Cement Files IPO Papers to Raise Rs 4,000...
JSW Cement has filed draft papers with Sebi for an IPO to raise Rs 4,000 crore. The IPO...