FMCG demand most in five southern states: Discretionary or essential, sales go north in south
south appears to be at the vanguard of a broader demand recovery in post-Covid India, with the five states that lead in several socio-economic metrics registering healthier sales of both discretionary and fast-moving consumer goods (FMCG) in comparison with the rest of the country.
Global consumer research firm Kantar's latest report showed consumers in the south spent the highest on FMCG products, with an additional ₹2,261 spent per person on an average in 2023, compared with 2022. It also said the total number of shopping trips nearly doubled in 2023 from the previous year, with an exponential 185% growth in FMCG pack purchases.
The data is for Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana.
«This uptake in purchase signifies increased purchasing power and consumer confidence in the region, driving demand across various FMCG categories,» the report said.
Companies said demand has improved for the entire country too, since January-March. The Retailers' Association of India (RAI) reported growth rates in the west and north matching that of the peninsula only in April, with the south being India's best-performing region in the past 12-15 months.
Better Than India Growth
RAI tracks retail-level sales growth across categories every month. In April, retailers in the south expanded sales 5% year-on-year against a 4% pan-India growth rate. In December, there was 7% growth in the south compared with 4% pan-India, RAI data showed.
RAI chief executive Kumar Rajagopalan said the peninsular region is
