Consumption To Drive Double-Digit FMCG Growth, Says Nielsen

India’s fast-moving consumer goods industry will continue to grow in double-digits in the second half of 2018, according to Nielsen India, driven by a rise in rural incomes, private consumption and consumer confidence.

The FMCG industry is estimated to grow at 12-13 percent in July-December, the market researcher said in an interaction with BloombergQuint. That would follow an 11 percent growth by value in the April-June quarter, aided by better consumer offtake, lower goods and services tax rates and a low base, it said. In terms of volume, the industry grew at 8 percent during the period.

Other Highlights

• Natural products continue to gain traction in the personal care space, growing three times the pace compared to non-natural category, according to Nielsen India.
• Nine out of 10 fastest-growing FMCG companies in the last one year were of Indian origin. (FMCG companies with an annual turnover of more than Rs 1,000 crore were considered)
• Foods category grew faster than personal and home care as consumers opt for branded products. That’s because the price gap between branded and unbranded items has narrowed after the GST rollout.
• Retail stock levels are now higher than the pre-demonetisation levels, according to Neilsen.
• Modern trade through supermarkets contributed 10 percent of the industry’s sales, hitting double-digits the first time, said Sameer Shukla, executive director at Nielsen India.
• Rural demand continues to outpace urban demand, which witnessed a dent and was growing at the same pace as urban after demonetisation.

Watch the interview here: