MUMBAI: The fast-moving client items business recorded a ten.6% progress in sales value in Oct-Dec 2024, the very best in 4 quarters helped largely by worth hikes and a festive quarter which fuelled spending on staples, snacks and different packaged items, information launched by market analysis agency NielsenIQ on Thursday confirmed.
Consumers, nevertheless, moved to smaller packs to sort out family budgets amid rising costs. “A higher unit growth than volume growth indicates preference shifts towards smaller packs in consumers,” analysts at NIQ stated. Sales quantity grew by 7.1% throughout the interval, greater than 3.9% in the previous quarter and 6.4% a 12 months in the past. Unit progress stood at 8% throughout the quarter. Unit progress refers back to the variety of particular person models bought whereas quantity progress is the overall amount of products bought.
Several client items firms took worth hikes in the Dec quarter to deal with rising commodity inflation. Firms like HUL and Godrej Consumer Products for example, took about 10% worth hikes in soaps class on account of inflation in palm oil, Nuvama Institutional Equities stated in a word. Broadly, the business noticed a 3.3% improve in costs in the quarter, NIQ stated. Companies are anticipated to take one other spherical of worth hikes in the present quarter.
In phrases of markets, rural continued to outpace city areas. “For the first time in four quarters, we have observed a combination of consumption and pricing driving overall FMCG growth. Additionally, smaller, affordable packs from small and medium manufacturers are boosting consumption,” stated Roosevelt Dsouza, head of buyer success, FMCG at NIQ India, including that rural markets “continue to lead the charge.” Rural consumption grew by 9.9% in the December quarter whereas city progress lagged at 5%.
