New Delhi North India reported higher fast-moving consumer goods sales in the April-June quarter, helping it gain 2.5% market share, while South and East markets registered a decline, according to Retail Intelligence The platform shows the data obtained from Bijom.
Overall FMCG sales grew 14.2% year-on-year in the quarter, mainly on the back of strong demand from categories such as beverages and branded products such as edible oils, rice, spices and wheat flour, apart from price hikes by consumer goods manufacturers. reason. However, sales declined by 0.9 per cent between May and June. Bijom tracks sector wise market share data on FMCG sales across states.
Packaged food sales rose 5.8% in the June quarter from a year ago, while home-care products declined 9%. The personal care categories posted a 3.2% drop in sales compared to a year ago, while confectionery grew 2.1%, the data showed.
Akshay D’Souza, Head of Growth and Insights, Bizom, said, “April-June 2022 registered year-on-year growth despite strong inflation, mainly due to pressure on FMCG sales during the sharp COVID wave last year.” ,
He said that due to scorching heat, disproportionate growth was registered in the beverage category. “Among most of the beverage products, this quarter saw the highest seasonal sales. We are seeing strong growth in North and Central India primarily driven by higher healthy beverage sales.”
However, FMCG companies are likely to report sluggish business in June quarter earnings, the brokerage said. “FMCG companies are expected to report value-based revenue growth, as most companies have taken 10-15% price hikes in the last one year to pass on the sharp inflation in palm oil, crude derivatives and agricultural commodities. “Volume growth is likely to remain muted in the context of lower sales in the base quarter, which was impacted by the second wave of the pandemic,” analysts at ICICI Securities said in a sector preview late last week. Besides, strong summer demand for ice cream may aid growth in the food segment after two years of disruption, he said.
However, D’Souza said a normal monsoon is expected to improve rural incomes, which will help boost consumption.
Meanwhile, the recent fall in prices of key commodities like edible oils may help families. At the end of last week, the central government had asked the edible oil unions to reduce the prices. 15 per liter amid easing of global supply constraints.
“With the reduction in the prices of edible oils also, we see a strong growth in sales of high value packs of these products, where consumers had started trading earlier in anticipation of price correction. This fall in prices should help all categories of brands, especially where it is a major input cost. They should now be able to focus on consumption driven growth rather than just value based growth,” D’Souza said.