look news india
Ahmedabad: Fast-moving consumer goods (FMCG) sales grew only 4 per cent in value terms during the April-June quarter as consumer spending in the country slowed, while sales grew 3.8 per cent in volume terms. Consumer research company NelsonIQ said with data that prices rose only 0.2 per cent in the quarter, indicating that the market remained stable.
According to the report, the April-June quarter saw a growth of only 3.8 per cent, down from 7.5 per cent in the same period a year ago and 6.5 per cent in the March quarter. In terms of volume, rural areas led with a 5.2 per cent increase in sales during this period, but urban areas saw a growth of only 2.8 per cent.
Consumption in both segments remained sluggish in the quarter ended June, the research firm said. In the January-March quarter, rural sales grew 7.6 per cent in volume terms and urban areas grew 5.7 per cent. Volume growth in food items, which accounts for 60 per cent of the FMCG consumption basket, recorded a mere 2.4 per cent growth in April-June, 2024, as against 8.5 per cent year-on-year and 4.8 per cent quarter-on-quarter.
Food items such as packaged salt, packaged wheat flour and palm oil are responsible for the slowdown in sales in terms of volume. Excluding food items, sales of other FMCG goods grew by 7.6 per cent during the quarter ended June. There was an increase of 11.1 per cent in the quarter ended March.
Consumer demand in the personal care and home care categories declined in both urban and rural areas. Personal care in the urban market grew by 5.2 per cent during April-June (compared to 9.7 per cent in January-March). In rural areas, growth during April-June was 8.3 per cent as against 10.6 per cent in January-March.
