FMCG growth up in Sep qtr, signs of rural recovery seen
general elections. At an all-India level, both the food and non-food categories contributed to the growth in consumption. In the third quarter of 2023, the food sector grew 8.7% year-on-year.
Similarly, the non-foods sector exhibited growth of 8.7% from a year earlier in the same period. This growth is primarily driven by products falling under impulse categories such as salty snacks, chocolates and confectionery, apart from biscuits, tea and coffee, NIQ said. “Impulse food categories continue to exhibit strong growth, and we see a growth recovery in habit-forming categories such as biscuits, tea, noodles, coffee, etc., after five quarters.
An increase in consumer spending on discretionary categories such as personal care and home care products suggests that rural consumers are beginning to spend beyond essential categories. This change in spending could be attributed to easing inflationary pressures. This renewed optimism across the country augurs well for the festive season," said Roosevelt D’souza, lead, customer success, NIQ India.
NIQ pointed to improved demand within the non-food categories, which grew 8.7% during the quarter, improving sequentially from the preceding three months. NIQ attributed this to an improvement in rural volumes. “Volume growth turns positive for the first time in personal care categories in rural.
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