Within the December quarter, rural quantity progress was pegged at 5.8 per cent over yr in the past interval however city quantity progress was at 6.9 per cent. This means that city quantity progress has seen a decline sequentially.
General, the FMCG sector witnessed a worth progress of 6.6 per cent at an all India stage. This was pushed by 6.5 per cent quantity progress and 0.1 per cent value progress. The NIQ report added that quantity progress for Q1 FY24 has been greater than quantity progress in Q1, FY23 (3.1 per cent).
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Roosevelt Dsouza, Head of Buyer Success – India at NIQ, stated, ”The FMCG business’s progress continues to be pushed by consumption developments in Q1 FY24 (JFM’24), with rural areas surpassing city progress for the primary time in 5 quarters.”
“Notably, House and Private Care (HPC) classes have outperformed meals classes. Whereas meals classes witness greater unit purchases, the expansion in HPC is essentially pushed by the recognition of bigger pack sizes,” he said.
Non-Meals
Non-Meals classes, witnessed an enchancment in quantity progress at 11.1 per cent in March quarter over yr in the past interval, which was virtually double the expansion as in comparison with Meals class. “Extra models have been bought in Meals classes in comparison with the identical interval final yr, whereas in Non-food, extra giant packs have been purchased,” the report famous.
In Q1 FY24, the quantity progress within the Meals sector stood at 4.8 per cent in comparison with Q1 FY23. It additionally witnessed a sequential dip in comparison with the December quarter (5.3 per cent). NIQ stated this was attributed to the slowdown seen within the staples meals phase.
In distinction, Non-Meals classes, there was an enchancment in demand developments with quantity progress reaching 11.1 per cent in Q1 FY24 in comparison with the identical interval final yr. It was additionally greater in comparison with the December quarter (9.6 per cent).
“This enchancment might be attributed to a rise in rural uptick, with a progress price of 12.8 per cent in Q1 FY24 (vs. 9.8 per cent in This autumn FY23); led by Private Care & House Care classes,” the report added.
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Even in city areas, non-food classes are witnessing a rise in consumption within the private care classes (8.4 per cent in Q1 FY24 vs. 5.8 per cent in This autumn FY23).
In the meantime, Fashionable Commerce channel continued to report sturdy double-digit quantity progress at 14.7 per cent within the March quarter. Conventional Commerce (kirana shops) noticed “secure progress”, with volumes registering 5.6 per cent progress over earlier yr. This was a tad greater than the earlier quarter (This autumn FY23), “suggesting that conventional retail channels are holding their floor,” the report famous.
Small gamers
Whereas giant gamers proceed to witness sturdy efficiency, small gamers have seen greater quantity progress charges in non-food classes within the final two quarters, the report famous.
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