FMCG Volume Growth Slows To 5.1% In March Qtr

New Delhi: The volume growth of India's FMCG industry has slowed down in the March quarter to 5.1 per cent, driven by increased consumer purchases of small-value packs, according to the latest report from data analytics firm NielsenIQ.

Volume growth is slowing across categories, and non-food segments are still outpacing food in the FMCG sector. The industry reported a volume growth of 6.1 per cent in the March quarter of 2024. Moreover, continuing the trends from the last five consecutive quarters, the rural market, which is mainly a small economy pack units market, continued to grow faster than the urban market.

However, its growth has also slowed down. "In Q1 2025, rural consumer demand grew at a slower pace compared to Q1 2024, yet it remained four times faster than growth in urban areas, where consumption further decelerated. Rural markets continued to outperform urban counterparts across most regions of India," it said. The FMCG industry recorded higher unit growth than volume growth in the March quarter, indicating a consumer preference shift toward smaller pack sizes, according to the latest NielsenIQ FMCG quarterly snapshot. In addition, small players -- mostly unbranded -- have gained ground, with double-digit volume growth, helped by the resurgence of the rural market, inflation, and changing market dynamics. Overall, the FMCG sector reported an 11 per cent year-on-year growth for the March quarter, in which volume growth contributed 5.1 per cent along with a 5.6 per cent increase in prices.