FMCG growth declines for 4th consecutive quarter
Since July-September 2018, there has been a continuous slump in the growth of the fast-moving consumer goods (FMCG) sector in terms of both value and volume. The value growth (or revenue earned) dropped from 16.5% in July-September 2018 to 10% in the June quarter this year; while in terms of growth by volume (or the number of packs sold), there was a decline from 13.4% to 6.2% in the same period.
This has been attributed to the shift to cheaper daily essential brands by consumers in the urban markets and slowdown in the growth of rural sector. “The real estate market has been considerably down and now the stock market as well. Consumers are feeling that they have lost net worth and seem to be going easy on consumption,” noted Varun Berry, MD, Britannia Industries.