FMCG growth slows in Dec quarter

India's fast-moving consumer goods (FMCG) sector grew at a slower pace, at 7.6 per cent, in October-December 2022 compared to the previous quarter as well as the year-ago period, as price growth tapered and volumes remained weak, according to data by market research firm NielsenIQ.

- SHARLEEN D'SOUZA

Volumes continued to decline in the December quarter but at a slower pace. In the quarter, volumes shrank 0.3 per cent year-on-year (YoY) compared to 0.7 per cent contraction in JulySeptember. Price growth during the quarter was 7.9 per cent, lower than 9.9 per cent in the previous quarter.

FMCG firms were consistently increasing the prices of their goods in view of higher raw material costs.

However, due to a decline in some raw material costs in recent months, companies have slowed down on price increases or taken price cuts in some cases.

NielsenIQ noted a drop in price growth both in the rural and urban markets. However, urban volumes still grew by 1.6 per cent YoY in the quarter, while rural volumes remained in the negative (-2.8 per cent). In value terms, urban markets witnessed an increase of 9.2 per cent, and rural witnessed 5.1 percent growth. In 2022, the sector grew 8.4 percent in value terms, while volumes shrunk by 1.5 percent.