Price hikes, sales trigger best quarter in a year for FMCG cos

Volumes up 7.1% in quarter on smaller packs, lower grammage, price hikes: NielsenIQ

- Suneera Tandon

India's packaged consumer goods companies reported their best quarter in a year as smaller packs, lower grammage, and price hikes helped them overcome a consumption slowdown that has weighed heavily on the sector in recent months.

Demand for packaged consumer goods in the December quarter spiked 10.6% year-on-year (y-o-y) in value terms, faster than the corresponding year-ago period's 6.5% growth, market researcher NielsenIQ India said in its FMCG quarterly snapshot.

The fast-moving consumer goods (FMCG) sector's recovery is more striking against the July-September period's 5.6% value growth and the June quarter's tepid 3.5% pace.

In volume terms, India's FMCG sector reported a 7.1% y-o-y jump for the December quarter, against the year-ago quarter's 6.4% pace, with consumers opting for smaller packs during the festive season as prices of daily staples remained high.