India’s FMCG market expanded in Q3 FY24 due to increased consumption, as per a report.

India’s FMCG industry witnessed a 6.4% growth in volume during the October-December quarter (Q3 FY24), driven by increased consumption, according to a report by research firm NielsenIQ. The industry also recorded a 6% growth in value during the same period, although consumption growth moderated sequentially. In rural areas, volume growth declined, while in urban areas, the decline was more pronounced. Traditional FMCG trade conducted by kirana stores also declined by 5.3% in Q3 FY24. However, modern trade in consumption experienced a positive momentum, growing by 16.8% compared to the same period last year. The report highlighted that average pack sizes in urban markets remained positive, and there was a growing preference for larger packs in rural areas as well. The narrowing down of consumption gaps between urban and rural markets was observed for the first time in 2023, with the north and west regions contributing to this trend. The interim Union Budget 2024-25, which supports economic boosters for the rural sector, is expected to benefit companies with a rural strategy. Despite a sequential-quarter decline, the rural recovery narrative continued throughout the year, with an uptick in consumption observed in Q4 2023. The food sector experienced a volume growth rate of 5.3% in Q3 FY24, primarily driven by habit-forming categories such as biscuits and noodles, while the non-food sector recorded a volume growth of 9.6%. This improvement in the non-food sector can be attributed to an increase in rural consumption growth.

India’s FMCG market witnessed growth in the third quarter of fiscal year 2024 due to increased consumption, according to a recent report. The Fast-Moving Consumer Goods (FMCG) industry experienced a surge in demand as consumers began spending more on essential products. This growth can be attributed to factors such as rising disposable incomes, changing consumer preferences, and the ongoing recovery from the pandemic. The report highlights the positive outlook for the FMCG sector in India, indicating potential opportunities for businesses operating in this market.

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