FMCG Performance In Rural India Worst In 7 Years: Nielsen

With steep drop in demand among rural consumers, small manufacturers worst hit

The country’s FMCG market, which clocked a value growth of 7.3 per cent in Q3 2019 — down from 16.2 per cent in Q3 2018 — has seen rural growth dropping below urban growth for the first time in seven years, said Nielsen Holdings Plc in its report on Q3 (July to September 2019) India FMCG Growth Snapshot.

The FMCG market has been witnessing a resurgence in modern trade, apart from divergent trends in the north and south zones of the country, it added.

Growth continues to be dampened by the drop in consumption, which has slowed down to 3.9 per cent in Q3 2019, from 13.2 per cent in Q3 of 2018, while price-led growth has sustained at 3.4 per cent this quarter, said the report by the data analytics company. The rural market grew at 5 per cent in Q3 2019, which is onefourth of the 20 per cent it clocked in the same period last year, while the urban market grew at 8 per cent (14 per).

Drop in demand