FMCG sales in urban areas declined by 2.1 percent year-on-year in the October-December 2023 quarter.
There has been a decline in FMCG sales in the October-December quarter. According to data from retail intelligence firm Bizom, there was a decline of 2.1 percent in FMCG sales in urban areas on an annual basis in the quarter ending December 2023, while sales in the month of December 2023 declined by 2.1 percent on an annual basis as compared to the same period last year. But it had decreased by 0.5 percent. According to the data, the total sales of FMCG were recorded 4.5 percent less in the October-December quarter and the total sales were recorded 2.2 percent less in the last month of 2023 i.e. December.
Rohit Java, Managing Director and Chief Executive Officer of Hindustan Unilever, said that the market growth has increased faster in cities than in rural areas. He says that the urban market has grown at the rate of 3 percent in two years, while the rural market has grown at the rate of 1 percent in the same period. In the quarterly update issued by FMCG companies, it has been said that there has been a decline in rural demand in the December quarter.
According to the data, the growth of urban FMCG sales in 2023 was stable at 0.4 percent, while rural sales recorded a growth of 2.3 percent and the total FMCG market recorded a growth of 2 percent. According to Bizom data, there is no increase in stock in urban areas after the festive season. There has been a decline in FMCG sales in rural markets in the December quarter in 2023.
Akshay D'Souza, head of growth and insights, Bijom, attributed the decline in sales and slow growth of FMCG to several factors. D'Souza said the combination of monsoon and cool summer weather has affected development in rural areas. Due to the sharp year-on-year decline in the prices of edible oils, the challenges of food inflation have reduced in 2023 as compared to 2022.
Published – January 26, 2024, 05:42 IST
Money9 App for latest updates on personal finance download.