8 minutes read

Growth in Indian FMCG Sector Amidst Changing Consumption Patterns

Explore the growth of the Indian FMCG sector in the October-December quarter, driven by increased consumption in both urban and rural areas, and learn how Probz.ai can provide valuable marke

Dheeraj Kumar
22/01/2024

The Indian Fast-Moving Consumer Goods (FMCG) sector has shown promising growth, with a 6.4% increase in volume during the October-December quarter, as reported by NielsenIQ. This growth is attributed to a rise in consumption across both urban and rural areas, marking a significant development in the sector. For the first time in 2023, the consumption gap between these markets has started to narrow, indicating a balanced growth trajectory.

Despite a slight decline in volume growth compared to the previous quarter, the FMCG industry still managed a 6% growth in value terms, thanks to a resurgence in rural markets. Looking ahead to 2024, the industry is expected to grow between 4.5% and 6.5%, driven by the sector's robustness and the overall strength of the Indian economy.

However, the last quarter of 2023 saw a moderation in consumption within the FMCG sector, with rural markets experiencing a slight decline in volume growth compared to urban markets, which faced a more pronounced drop. Nonetheless, categories such as biscuits, noodles, and essential home products continued to drive consumption, demonstrating resilience and sustained demand despite flat or negative price growth.

Modern trade channels have seen a significant 16.8% increase in FMCG sales, while traditional trade channels witnessed a slowdown, with growth dropping to 5.3% in the fourth quarter. The report also highlights a shift in consumer preferences towards larger pack sizes in both urban and rural markets.

In terms of product categories, food items saw a better performance compared to the previous year, although growth slowed down from the third quarter. Non-food categories, on the other hand, experienced an improvement in volume growth, particularly in rural areas, driven by home care and personal care products.

Conclusion: The Indian FMCG sector's growth trajectory is a testament to the industry's resilience and the evolving consumption patterns across urban and rural markets. As the sector continues to adapt and innovate, platforms like Probz.ai stand to offer valuable insights. Probz.ai is an AI-powered platform designed to collect both qualitative and quantitative insights, helping businesses navigate the complexities of consumer behavior and market trends effectively.

Tags:
Marketing
Development
HR & Recruiting
Design
Management
Share:

Dheeraj Kumar

data specialist

Archit has been working in the field of data science since 2018. He has worked with various clients in the field of healthcare, education, and finance. He has worked with various clients in the field of healthcare, education, and finance. He has worked with various clients in the field of healthcare, education, and finance.

Member since Mar 15, 2021

Latest Posts

08 Apr 20248 minutes read
Exploring the Surge in India's Two-Wheeler Market: Trends and Forecasts
Dheeraj Kumar
View All

Get Free
Product Feedback

hello@probz.in
Bangalore, India 560066

Sign Up For Newsletter

Receive 50% discount on first project after the Launch