In India, fast-moving consumer goods (FMCG) saw a growth of 17.5% in rural regions and a growth of 6.1% in urban areas in March. FMCG sales increased by 14.1% year over year in March, according to data issued monthly by Bizom, a retail intelligence platform that measures consumer goods sales across 7.5 million places.
While the segments for commodities, packaged foods, home care, and confectionary saw a positive development, the segments for beverages and personal care experienced negative growth of 1.5% and 9.5%, respectively.
“A strong increase in the quantity of Kirana outlets by almost double digits YoY in rural areas helped post strong growth in FMCG sales for March 2023,” the statement continued. According to Akshay D’Souza, Chief of Growth and Insights at Bizom, rural areas experienced part of the stock surge for summer products in kirana stores and helped drive year-end sales in March 2023.
In the past six months, FMCG companies have implemented price reductions and grammage increases in response to the lowering of major commodity prices. The volume is anticipated to increase in Q4FY23 as a result of this. According to the ICICI Securities preview on FMCG, we expect our FMCG coverage universe to experience a 9.8% revenue increase in Q4FY23, driven by a combination of volume and pricing.
“In FY24, we anticipate a global decline in food-related infections. We do anticipate a decrease in costs across categories in India as the FMCG market becomes more competitive, which might assist increase consumption,” said D’Souza.
