Low rural offtake weighs as FMCG volumes shrink nearly 2% in Q3FY22

Value growth still higher due to price hikes

Fast-moving consumer goods or FMCG companies have seen demand, especially from rural areas, take a hit thereby pulling down their sales volumes. However, price hikes taken by the consumer firms to cushion the impact of rising commodity costs have resulted in positive value growth for the industry.

Data by NielsenIQ sourced from the industry shows that volume growth in the October-December quarter (Q3FY22) contracted by 1.8 per cent for the sector while value growth stood at 9.9 per cent, compared to the year-ago period.

According to Bizom’s data, rural FMCG sales (in value terms) declined by 7 per cent in