FMCG Industry Faces Slowdown amid Inflationary Pressures

The FMCG industry is experiencing a slowdown, with volume growth decreasing to 4.3% from 6.4% a year ago due to inflation pressures. Urban and rural markets both show slowed growth, with urban at 4.5% and rural at 4%. Personal care categories, however, indicate potential recovery signs.

The fast-moving consumer goods (FMCG) industry is encountering a period of slowdown amid prevailing inflationary pressures, as revealed in Kantar's recent report. Volume growth for the industry during August-October has plummeted to 4.3%, a significant drop from the 6.4% recorded for the same period last year.

The urban market reflected this deceleration, registering a growth of 4.5%, contrasting the 6.9% growth shown in August-October 2023. Conversely, the rural market also lagged, posting a modest growth of 4%, driven primarily by staple categories like wheat flour. Analysts suggest the market is not yet in severe decline, though the current trend is noteworthy.

Inflation has caused household spending to rise, with shoppers currently paying Rs 137 per KG for FMCG goods, up from Rs 133 in the previous quarter. Despite these challenges, personal care categories have shown remarkable growth, indicating possible market stabilization in specific areas.

(With inputs from agencies.)