In a recent report published by consumer intelligence platform NielsenIQ India’s Fast Moving Consumer Goods sector will witness a 5.7% growth by value, 1.5% growth by price and a 4.1% growth in volume in the July-September quarter.

Rural consumption volume continues to outpace urban consumption volume for the third consecutive quarter. The FMCG sector displays resilience despite softening consumption in both regions with a marginal price increase.

"Small manufacturers have rebounded after recent declines, while major players are trailing in value growth," said Head of Commercial – India at NielsenIQ, Mr. Roosevelt D’souza.

In Q3 both rural and urban areas showed signs of recovery in consumer demand. The urban demand in Q3 grew by 2.8% whereas the rural demand grew by 6%. Rural markets outpaced urban volume growth in most regions. Consumption of packaged food items increased by 3.4%, despite rising prices of edible oils, packaged atta and spices. Household products maintained a stable 6% growth.

Hindustan Unilever predicted that rising prices of crude palm oil would also increase the prices in the FMCG sector. Small manufacturers benefitted more from volume growth, better than the larger players, and showed slower value growth compared to Q1 in FY24.

According to CRISIL forecasts, 7-9% revenue growth for the FMCG sector in FY25, was driven by increased volume and rural demand recovery. The fast-moving consumer goods sector is India’s fourth-largest sector and has been expanding at a healthy pace. With household and personal care accounting for 50% of FMCG sales in India, the Industry is an important contributor to India’s GDP.