According to the FMCG Quarterly Snapshot for Q4 2023 by NielsenIQ, the Indian FMCG (fast-moving consumer goods) industry experienced a 6% growth in value, attributed to a 6.4% increase in volume, indicating positive consumption patterns at an All-India level.
The report further revealed that volume growth for the quarter is 6.1% higher than in the same period last year (i.e., Q4 2022). However, the report notes a moderation in consumption growth within the FMCG sector compared to the sequential quarters across the country.
The report noted that consumption gaps between urban and rural markets are narrowing down. The North and West regions are contributing to this phenomenon. Propects of a favorable Union Budget 2024-25 later this month is expected to support several economic boosters for the rural sector, which should augur well for companies with a rural strategy.
Despite a sequential-quarter decline, the rural recovery narrative continued to evolve throughout the year. The NIQ report noted that in Q4 2023, it observed an uptick in consumption, primarily driven by habit-forming categories (such as biscuits and noodles) in food and essential home products. These categories have thrived despite flat to negative price growth, indicating resilience and sustained demand.
The changing dynamics in rural areas, fluctuation in raw materials prices and shift in consumer behavior were reflected in the quarterly results of the FMCG companies. Here’s a breakdown of how the FMCG companies fared in the fourth quarter of 2023.
Britannia Industries
Parle Industries
Dabur India
Marico
Godrej Consumer Products
Hindustan Unilever (HUL)
Adani Wilmar
Nestlé
Colgate-Palmolive India
