India's FMCG industry grew 9.4% in Q4 FY2021

India's fast-moving consumer goods industry grew 9.4% in the last quarter of fiscal 2021 , driven by higher sales and value growth driven by higher prices of products , especially staples , says a new report by global monitoring and data analytics company Nielsen .

The Fast Moving Consumer Goods Report for Q1 2021 released by Nielsen 's Retail Intelligence Team stated that India's fast-moving consumer goods industry achieved a growth of 9.4% in the first quarter of 2021, after growing by 7.3% in the previous quarter ( October to December 2020) , showing an overall sustained growth trend .

Nielsen said sales growth in traditional trade channels jumped to double digits, while e-commerce growth fell to single digits in the January - March 2021 quarter. During the reporting period, the rural market achieved a strong growth of 14.6%, while the urban market started to see positive growth after the first two quarters.

According to the report, after two quarters of year-on-year decline , India 's urban economy showed positive growth in January- March this year , up 2.2%.

The company said the rural market continued to further consolidate its growth momentum with a growth rate of 14.2% in the December quarter last year and 14.6% in the January-March period this year.

Nielsen said that although the consumption growth of food and non-food products was consistent, certain products in the non-staple food category , such as biscuits, coffee, cheese, ketchup , etc., showed higher growth due to the increase in household consumption .

Commenting on the findings , Diptanshu Ray, Head of South Asia at NielsenIQ , said: “The growth in FMCG was supported by categories such as staples and basic non-food items .

However, he also warned: " With the resurgence of the epidemic , the national market has been affected, and some new changes may occur in the April - June quarter .

The report said that at present , many parts of India have been blocked again , and e-commerce will burst into more vitality as the last mile delivery volume increases . "

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