Rural Markets Propel FMCG Industry Growth: A NielsenIQ Report

The FMCG industry experienced a 10.6% growth in the December 2024 quarter, driven by strong rural market performance and festive demand. Despite inflation pressures, consumption increased with a shift towards smaller packs. Traditional trade channels thrived, while urban markets showed slower growth compared to rural areas.

The FMCG industry has marked a 10.6% growth in value terms during the December 2024 quarter, bolstered by a robust performance from rural markets, according to NielsenIQ's latest report. For the fourth consecutive quarter, rural markets outpaced urban ones, a trend aided by festive demand.

Despite an inflation-induced price rise of 3.3%, overall volume climbed by 7.1%, as consumers veered toward smaller, more affordable pack sizes. Traditional trade channels, particularly local Kirana stores, saw an 8.1% sales volume increase, while modern trade slightly declined.

Driven by edible oils and impulse items, food volume rose significantly, with the home and personal care sector showing strong consumption. Notably, smaller manufacturers gained traction over larger companies, capitalizing on the consistent demand in rural areas and contributing to the steady FMCG growth.

(With inputs from agencies.)