FMCG set for rebound
According to research by Nielsen, India’s fast-moving consumer goods (FMCG) market is set for an expected growth rate of 9-10% in calendar year 2020. The research firm asserts that the rural slowdown has now bottomed out and demand will soon stabilise. Growth had slowed down to 9.7% last year as compared to 13.5% in 2018. In the quarter ending December, it dropped to a three-year low of 6.6%. Prasun Basu, South Asia zone president, Nielsen Global Connect, commented, “A mix of macroeconomic factors and channel and zone factors driven by manufacturers, coupled with consolidation of smaller players, have been instrumental in the slowdown.” A number of categories like soaps, shampoos, biscuits, tea, hair oil, skin care and toothpaste saw growth drop to low single digits.