FMCG Growth Slows Sequentially in December Quarter; Expected to Slow to 4.5-6.5% in 2024: Report

The fast-moving consumer goods (FMCG) sector is expected to grow at 4.5-6.5% in 2024, sharply lower than the robust 9.3% growth experienced in 2023 and 8.4% in 2022, according to NielsenIQ.

In the December quarter, the FMCG sector grew 6.4% in volumes on the back of positive consumption across the country, NielsenIQ said.

The rate of consumption growth, in terms of both volume and value, within the FMCG sector decelerated sequentially across the entire country.

The trend was seen in both urban and rural markets, where volumes grew year-on-year but dipped sequentially, Mintreported, citing the report.

The volume growth in the urban sector during the October-December quarter stood at 6.8% as compared to 10.2% in the previous quarter. Rural volume growth stood at 5.8% against 6.4% in the July to September quarter, the Economic Timesreported, citing the report.

The value growth in the industry stood at 6% in the quarter. This has been attributed to the 6.4% rise in volume. Therefore, this indicates positive consumption patterns at an all-India level, the report said.

The report also added that the volume growth in the food sector during the October-December quarter stood at 5.3%, down from 8.7% in the July-September quarter of 2023. This was attributed to the slowdown in the products under staples (such as refined and non-refined edible oils, etc.) and impulse (such as confectionery, etc.) categories.

Within the non-food categories, which include personal and home care products, there is an improvement, with volume growth reaching 9.6% in the quarter ended December as compared to last year. This is an increase from the 8.7% recorded in July-September.