CHENNAI, Feb 2 (Reuters) - Growth in India's fast-moving
consumer goods (FMCG) industry slowed in the last three months
of 2022 from the previous quarter as rural shoppers spent less
on washing powder and shampoo, market intelligence firm
NielsenIQ said on Thursday.
FMCG companies - particularly those who make personal care
products - have struggled to pull in sales from cash-strapped
rural consumers, worst affected by the COVID-19 pandemic and
Russia-Ukraine war-led inflation.
India's FMCG industry grew 7.6% in October-December after a
9.2% rise in the previous three months, though consumption
declined in the south and west, NielsenIQ said.
"Over the last year, consumer spending was impacted
primarily because of inflation, echoed by consumers in the shift
to smaller packs, and by manufacturers via grammage reduction,"
Satish Pillai, managing director of NielsenIQ in India, said in
a statement.
Consumption of non-food items including washing powder,
detergent bars and toilet soaps declined across consumer groups,
with manufacturers offering lower discounts, according to
NielsenIQ.
Still, consumers in urban areas bought more, with big-format
supermarkets and hypermarkets growing in double digits for the
second straight quarter.
Prices of products rose an average of 7.9% in
October-December, marking the first single-digit growth after
six quarters. It recorded growth of 9.9% to about 13% during the
period.
Easing inflation and a pickup in farm incomes are leading to
a gradual recovery in the rural markets, consumer goods makers
including Dove soap maker Hindustan Unilever and
toothpaste seller Dabur India said last month.
The Nifty FMCG index declined nearly 1% in the
last quarter of 2022, while the blue-chip Nifty 50 index
added 6%.
(Reporting by Praveen Paramasivam in Chennai; Editing by Dhanya
Ann Thoppil)
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