Data analytics firm NielsenIQ said overall consumption improved as unit volumes grew on a sequential basis in the April-June quarter, but on an annualized basis, it grew negative 0.7% in the quarter under review.
Data analytics firm NielsenIQ said overall consumption improved as unit volumes grew on a sequential basis in the April-June quarter, but on an annualized basis, it grew negative 0.7% in the quarter under review.
“of the country FMCG Industry The June quarter registered a growth of 10.9 per cent in value terms, helped by consumption growth, even though rural markets remained sluggish in non-food sectors,” said a report.
Data analytics firm NielsenIQ on August 2 said overall consumption has improved as unit volumes grew sequentially in the April-June quarter, but on an annualized basis, it grew negative by 0.7% in the quarter under review.
In the period April-June 2022, urban markets revived with a positive volume growth of 0.6%, but rural markets registered a negative growth of 2.4%.
“The industry sees positive momentum in volume-based growth along with value-based growth. The volume growth which was – 4.1% in the previous quarter (January-March) improved to some extent – 0.7% (Apr-June) 22 NielsenIQ said in its FMCG quarterly snapshot report.
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NielsenIQ Managing Director-India Satish Pillai said PTI That there has been double-digit price growth over the past five quarters, due to factors such as inflation and other macroeconomic variables.
“Reducing one of these will help drive growth in the previous quarter. It is important to note that consumption growth came from unit growth as the key driver of FMCG for the quarter,” he said.
The report said that the FMCG industry witnessed a growth of 10.9 per cent in terms of value in the June quarter. According to him, the latest trend outpaces the previous two quarters of decline in consumption and highlights the beginning of cautious optimism among consumers.
“In addition, improving consumption and promising macro factors support NielsenIQ’s forecast of double-digit growth for 2022,” he said. He said that while urban markets have shown improvement in consumption, rural markets are following closely.
“The decline in consumption for the past few quarters has been arrested for food items in rural markets, but the positive growth in consumption for non-food items is yet to return,” he said.
According to the report, the improvement in FMCG consumption in the latest April-June quarter is on account of unit growth as consumers moved to smaller pack sizes and reduced grammar from manufacturers in key value packs.
“Although the volume decline is driven by a decline in average pack size growth, unit growth this quarter increased to 8.9% from 1.5% in the previous quarter, which indicates that consumers are buying smaller packs, however, they are more units,” the report said.
In April-June 2022, small manufacturers with turnover up to Rs 100 crore showed positive volume growth after three quarters of red.
“Small manufacturers are back on track with positive volume growth, with 1.8% growth in Q2’22, – 8.5% in Q1’22 primarily driven by food (5.6 percent in Q2’22 – Q1’22) in 5.5%,” it said.
The negative growth in non-food volumes continued, although it accelerated from the previous quarter. In the June quarter, there was a negative growth of 13.8%, while in the March quarter it was – 20.4%, the report said, adding that volumes for medium and large manufacturers continued to decline.
“Food segment has witnessed a positive volume growth of 1.8% in Q2’22 (April-June) and within that, impulse categories like chocolates, salty snacks have increased to 15.1%, while non-foods remains negative ,” it said.
In addition, non-essential personal care categories such as scented deodorants and colognes saw an increase of over 40%, fueled by the summer season and consumers going out for work and entertainment as they returned to normal routines Were.