The Indian fast-moving consumer goods (FMCG) industry has seen a decline in growth in the December quarter of the calendar year 2022 due to a slump in rural demand, according to Nielsen IQ’s report. The industry witnessed a growth of 7.6 percent in the December quarter, which is much lower than the 9.2 percent seen in the preceding quarter.

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The report also said that the industry witnessed a price growth of 7.9 percent in the December quarter as compared to 9.9 percent a year earlier.

In the December quarter, volume growth in the FMCG sector dropped 0.3 percent, compared with a 0.6 percent decline over the previous quarter.

The rural market, which contributes nearly 35 percent of the total FMCG sales, saw its volume declining 2.8 percent, in contrast, urban volumes rose 1.6 percent.

Although overall FMCG volume growth was negative in the December quarter, absolute values as well as volumes were above pre-pandemic levels, the report pointed out.

Traditional trade has seen a 1.5 percent volume degrowth in the December quarter, making it the fifth straight quarter of decline, while modern trade maintained a double-digit value growth at 23.3 percent.

In terms of segments, the food segment performed well compared to the non-food space in the December quarter. The food sector has seen a growth of 8.6 percent in the December quarter and volume in the space rose 1.6 percent. The non-food space has witnessed a 7.4 percent growth while the volume dropped by 4.6 percent.

(Edited by : Rukmani Krishna)