FMCG sales pick up a month after third wave of Covid-19, shows data

The fast-moving consumer goods category (FMCG) has recovered in just one month after the third wave of the pandemic compared to the full quarter it took to recover after the second wave in 2021 driven by strong off takes of packaged food products and commodity product (wheat flour, edible oil, grains etc…) sales that have surpassed last year sales numbers. 

“Rural growth continues to fire FMCG sales on a year-on-year basis while urban sales are slightly down with discretionary product sales being impacted in the recovery from the third wave,” Akshay D’Souza, chief of growth & insights at Bizom told Business Standard. 

Urban growth on a month-on-month basis has seen strong growth, although almost in line with rural growth trends. However, on a year-on-year basis, it continues to remain down. On a year-on-year basis, urban sales of FMCG items were down 10.7 per cent while rural sales was up 12.7 per cent. 

Homecare and personal care category sales are down on a month-on-month basis as well as on a year-on-year basis. Homecare category witnessed a decline of 47 per cent in sales compared to last year, while personal care witnessed a decline in sales of 21.3 per cent compared to February last year. 

However, price increases over the last one year have led to strong growth rates for the industry. Due to rising input costs, FMCG companies have been forced to pass on the rise in raw material costs to consumers.

Going ahead, input costs pressures are expected to continue as the Russia-Ukraine crisis has led to commodity costs inching to record levels and may push consumer goods firm to hike prices again.