View source for Fast Moving Consumer Goods (FMCG): India

=Urban vis-à-vis rural markets=
==2022-23==
[https://epaper.timesgroup.com/article-share?article=17_03_2023_033_006_cap_TOI  Namrata Singh, March 17, 2023: ''The Times of India'']

[[File: FMCG (fast-moving consumer goods)- Growth in Urban-Rural areas, February 2023.jpg|FMCG (fast-moving consumer goods)- Growth in Urban-Rural areas, February 2023 <br/> From: [https://epaper.timesgroup.com/article-share?article=17_03_2023_033_006_cap_TOI  Namrata Singh, March 17, 2023: ''The Times of India'']|frame|500px]]

Mumbai : FMCG (fast-moving consumer goods) categories such as home care, packaged foods, branded commodities and personal care have driven the rural sales turnaround in February this year, as the hinterland outpaced urban growth. 
 This, according to data from Bizom, a platform that automates retail execution at 7. 5 million kirana stores, underscores rural India seeing real growth for the first time since August 2022. In February 2023, while urban sales grew 5. 5% as compared to the year-ago period, rural sales expanded 12. 4%. Bizom’s chief (growth & insights) Akshay D’Souza said, “We’ve seen a doubledigit growth in FMCG sales on the back of a strong performance in villages. In five of the six categories, we’ve seen rural sales outperform urban in February 2023. ”

==2022-24==
[https://epaper.indiatimes.com/article-share?article=08_05_2024_017_014_cap_TOI Asmita Dey, May 9, 2024: ''The Times of India'']

[[File: FMCG (fast-moving consumer goods)- Growth in Urban-Rural areas, 2022-24 .jpg|FMCG (fast-moving consumer goods)- Growth in Urban-Rural areas, 2022-24  <br/> From: [https://epaper.indiatimes.com/article-share?article=08_05_2024_017_014_cap_TOI Asmita Dey, May 9, 2024: ''The Times of India'']|frame|500px]]

Mumbai:For the first time in at least two years, rural demand for FMCG has outpaced urban markets. Rural India-led demand for shampoos, soaps, detergent bars and other fast moving consumer goods in the March quarter helped drive higher volume growth for the industry, a quarterly report by NielsenIQ said. 

 In the March quarter (Q1), the FMCG industry recorded a volume growth of 6.5% — higher than the 3.1% growth it saw in the year-ago period. While consumption growth for urban markets during the same period stood at 5.7%, rural grew at 7.6% on the back of robust demand for home and personal care (HPC) products, analysts at NIQ told TOI. After over a year of negative growth, rural consumption had recorded positive growth in the first quarter of 2023 at 0.3%. 

“Home and personal care categories have outperformed food categories. While food categories witness higher unit purchases, the growth in HPC is largely driven by the popularity of larger pack sizes,” Roosevelt Dsouza, head of customer success (India) at NIQ said in a statement. The HPC segment contributes about 32% to FMCG sales. 

 While the revival in rural consumption should augur well for the industry which has been grappling with a slowdown in overall growth due to subdued rural demand, a breakdown of the broader consumption shows that demand for all FMCG categories is not growing at the same pace. Staples, for instance, is seeing muted growth. The sequential decline in urban consumption growth from 6.9% to 5.7% is due to a slowdown in volume growth for staples (items like oils, rice, atta and salt) which has been the trend since the last four quarters. Staples has a 46% weightage in the foods bucket. “To some extent, the slowdown in staples can be attributed to high price growth in other than oil categories,” analysts at NIQ said.

 Staples has impacted volume growth for the overall foods space — in Q1, volume growth for foods space stood at 4.8%, down from 5.3% quarter-on-quarter. Consumption of non-food segments touched 11.1% in Q1 compared to 9.6% in Q4 2023. “This improvement can be attributed to an increase in rural uptick… in Q1, non-food sees almost double the growth (total) as compared to food,” NIQ said. Value growth for the FMCG sector during Q1 stood at 6.6%.

 In Q4 FY24, although HUL posted a decline in net profits due to price cuts, it indicated that rural markets were showing green shoots of recovery.

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