FMCG industry grows 7.3% in Oct-Dec, rural sales up 14.2%: Nielsen

New Delhi: India's fast moving consumer goods industry bounced back with a growth of 7.3% in the quarter ended December 2020 pushed by sales of personal care items, food products, hygiene and immunity boosting product, according to data released by market research firm Nielsen.

The growth was driven by recovery in consumption and continued rural growth in the months following the festive season. “The festive period led growth uptick in November which sustained in December,” Nielsen said.

Rural markets continue to grow in double digits, accelerating to 14.2% in the December quarter, from 10.6% in the September quarter. This sharper recovery is on the back of favourable agricultural sector performance, government action towards rural employment generation and as rural India had lesser impact of the pandemic, Nielsen said.

Metros also sprung back into the positive growth zone with 0.8% growth during the period compared to previous year after showing a decline for two quarters. The home and personal care category witnessed a 5% volume growth compared to the same period in the previous year. Food products saw a 10% growth in volume on the back of increased consumption as well as price. Growth of staple food items outpaced the overall food category growing at 18% in the quarter compared to a year ago.


The hygiene and immunity building categories continued on a high value growth with 46% growth. While small manufacturers, those with an annual sales turnover of less than `100 crore, continued to exhibit double-digit growth of 16%, large manufacturers — with annual sales of more than `600 crore — also witnessed a 5% value growth led by 4% rise in consumption volume.

Traditional trade channels continued their growth momentum with 8% growth during the quarter compared to last year. Within organised trade, modern trade channels posted a decline of 2% in the December quarter, as against a 15% decline in the previous quarter.

FMCG sales through ecommerce is stabilising at a consumption level higher than pre-Covid levels on account of a spurt in metro cities, Nielsen said.