FMCG slowdown gets worse in Q2 as consumer sentiment remains tepid

Sector analysts admit the going will be tough for companies in Q2, an admission that some firms have already made in their recent quarterly updates

India’s fast-moving consumer goods (FMCG) market slowed to a five-quarter low in the July-September (Q2) period as consumer sentiment remained tepid. 

The Nielsen data quoted by industry executives indicates that value and volume growth in Q2 have come down to levels of 5 per cent and 3 per cent, respectively, as against a moving annual total (MAT) of 9 per cent and 7 per cent for the market. MAT is calculated over the last 12 months. In April-June (Q1), the domestic FMCG market reported volume and value growth of 6.2 per cent and 10 per cent, respectively, while in January-March, volume