Higher raw material prices have dented the growth recovery for many sectors. The FMCG sector grew only 12.6 percent in the second quarter as compared to 36.9 percent in the first quarter, and the decline is significantly higher in the rural markets. CNBC-TV18’s Shilpa Ranipeta has the latest consumption trends released by Nielsen.
Inflation has dragged down the FMCG industry, with Nielsen data showing a slowdown in growth in the July to September quarter to 12.6 percent, less than half of the growth seen in the previous quarter, led by urban India. This growth was mainly price-led with just 1.2 percent of the growth being volume-led, which indicates households are feeling the pinch, and are buying lesser due price hikes resulting from rising commodity and raw material prices. This is reflected in Nielsen’s data which shows categories like edible oils and impulse categories like snacks and confectionery seeing value growth on account on rising prices, while volume growth was driven by packaged rice, breakfast cereals and chocolates.