Households’ FMCG consumption in April-June highest in two years: Report

Households’ FMCG consumption in April-June highest in two years: Report

Household consumption of FMCG products in April-June 2020 was the highest in the last two years, led by personal care items, a report said. The fast-moving consumer goods (FMCG) industry registered a growth of 4.3 per cent in volume and 8.5 per cent in value terms in the lockdown-hit April-June quarter, as per the report by data, insights and consulting company Kantar. Personal care segment witnessed a double-digit growth of 11.1 per cent, while household care, which consists of products like detergents and surface cleaners, logged 4.6 per cent growth.

“Volume-wise, FMCG has seen the best quarter in the last couple of years, growing at 4.3 per cent on a strong growth in both personal care and household care…All sectors out-performed the 2019 performance,” the report said. Food and beverage (F&B) posted a mild growth of 3.7 per cent in the April-June period. “Within foods and beverages, foods have grown by a strong 5.7 per cent but beverages have dropped by 19 per cent, causing F&B to grow slower than the other sectors,” it said.

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Kantar Managing Director- South Asia, Worldpanel Division, K Ramakrishnan said, “Even with lockdown, this quarter has been the best quarter in the last couple of years in terms of growth. From a household purchases lens, FMCG overall seems fairly strong.” “Growth has been similar in value and volume. These figures are all both urban and rural together. While out of home consumption may have seen a sharp drop, the household view is one of positive growth,” he added.

In value terms, the FMCG industry reported 8.5 per cent growth in the April-June quarter, compared to 6.4 per cent in the corresponding period of 2019. Personal care, which mainly consists of oral, personal cleansing and hair care products, reported 10.7 per cent growth in value terms, while household care saw 12.1 per cent growth and F&B grew by 7.2 per cent. “Value has only marginally outpaced volume at the FMCG level,” it said.

Several FMCG companies have reported higher sales in the rural and semi-urban areas. Presently, rural markets account for around 38 per cent of the total FMCG sales. Interestingly, Kantar’s findings are in contrast to a report by data analytic firm Nielsen, which had last month said the FMCG industry witnessed an unprecedented decline of 17.1 per cent in sales in April-June 2020.

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