🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥

Startup Showcase

Premium Content

Try our Valuation Calculator →

News on Medial

For FMCG, rural markets finally deliver some cheer

Livemint

Livemint · 1y ago

For FMCG, rural markets finally deliver some cheer

India's packaged consumer goods industry experienced a significant turnaround in the March quarter, with rural demand surpassing urban markets for the first time in 15 months. The FMCG industry reported a 6.6% growth in value terms, driven by a 6.5% increase in volumes. The growth in rural areas was attributed to the popularity of larger pack sizes in the home and personal care categories. While urban markets still showed growth, it was slower than in the previous quarter. Modern trade reported strong volume growth, while traditional trade remained stable. Non-food categories outpaced the food category in terms of growth.

Related News

FMCG makers see weather impact on topline growth in June quarter

YourStory

YourStory · 1m ago

FMCG makers see weather impact on topline growth in June quarter

FMCG companies like Marico, Dabur, and Godrej Consumer predict modest growth in the June quarter, affected by unseasonal rains, short summer, and inflation pressures. Although margins remain below normal, FMCG firms expect single-digit volume growth. While urban demand improves, Godrej anticipates strong value growth, and Dabur's core brands may see robust gains. Marico faces inflation impact but notes demand consistency, especially in rural areas, while international markets deliver notable growth.

India’s grocery bill reveals a tale of two markets

Economic Times

Economic Times · 27d ago

India’s grocery bill reveals a tale of two markets

India's FMCG sector shows a rural-urban divide in consumer preferences. Urban shoppers, influenced by inflation and digital access, favor unbranded goods for savings, with an 8.4% volume growth in cities vs. 2.3% in rural areas. Rural consumers remain loyal to legacy brands, prioritizing quality even at higher prices, with 5.1% volume growth. Large FMCG companies adopt dual strategies: digital-first products for urban markets and established brands for rural consumers.

To boost consumption in rural markets, FMCG players need to offer the right value: BCG’s Namit Puri

Thehindubusinessline

Thehindubusinessline · 1y ago

To boost consumption in rural markets, FMCG players need to offer the right value: BCG’s Namit Puri

The FMCG industry in India has been facing challenges in terms of volume growth, particularly in rural areas. Namit Puri, Managing Director and Senior Partner at BCG India, suggests that FMCG companies should focus on offering the right value to consumers to boost volume growth. This involves sharpening consumer propositions and portfolio strategies, ensuring differentiation, and providing value compared to unorganized players. Additionally, expanding distribution is crucial for success. Puri also highlights the coexistence of sluggish growth in mass market segments and strong growth in premium segments, driven by the affluent and elite households. Finally, the quick commerce channel is expected to continue growing in importance for FMCG players.

FMCG firms report single-digit volume growth with better margins in December quarter

Thehindubusinessline

Thehindubusinessline · 1y ago

FMCG firms report single-digit volume growth with better margins in December quarter

Fast-moving consumer goods (FMCG) companies in India reported single-digit volume growth and improved margins in most segments during the December quarter. Although the operating environment remained challenging, moderating commodity inflation supported the performance. Some companies experienced a decline in topline numbers as they lowered prices, passing on the benefits of softening commodity prices to consumers. Rural demand remained subdued, while urban markets saw moderate growth. FMCG companies expect an uptick in consumption in the coming quarters, fueled by increased government spending and the approaching general elections.

India's consumer goods sector longs for a rural revival

Livemint

Livemint · 1y ago

India's consumer goods sector longs for a rural revival

Rural spending in India has been sluggish due to factors such as high inflation, a poor monsoon season, and low wage growth. The slow recovery of rural demand is causing concerns for the fast-moving consumer goods (FMCG) sector, which relies on rural sales for a significant portion of their revenue. Analysts predict weaker growth in the sector, and earnings for FMCG companies have already shown a slowdown. While some companies are managing to pass on the benefits of lower input costs to consumers, the overall volume growth remains muted. The recovery of rural demand is expected to be gradual, with factors such as government incentives and a better monsoon playing a role.

FMCG firms worry over high inflation, squeezing urban market; hint price hike

YourStory

YourStory · 9m ago

FMCG firms worry over high inflation, squeezing urban market; hint price hike

Leading FMCG companies experienced a decline in margins in Q3 due to higher input costs and food inflation, which affected urban consumption. Rising commodity prices, such as palm oil, coffee, and cocoa, have led some companies to consider price hikes. Rural markets have continued to grow, and premium products and quick-commerce channels have shown positive performance. Companies like GCPL, Dabur India, and Nestle India have reported decreased profits and expressed concerns over the challenging demand environment. Overall, urban areas have been more impacted by food inflation and weakened consumer spending compared to rural areas.

FMCG cos may report low-to-mid single-digit volume growth in Q4

Livemint

Livemint · 1y ago

FMCG cos may report low-to-mid single-digit volume growth in Q4

FMCG demand sentiment in India remained consistent in the fourth quarter, with urban and rural consumption trends converging. Marico expects a slight uptick in volumes for its India business during this quarter, while Godrej expects high-single digit volume growth. Dabur warns of sluggish demand trends. Analysts predict low-to-mid-single-digit volume growth driven by urban markets. The impact of high inflation on consumption is a concern, particularly in the mass segment. However, analysts anticipate a rebound in volume growth in the coming months. QSRs are expected to report muted demand.

Priyank Kharge, Tejasvi Surya among leaders to cheer news of US Consulate in Bengaluru

Economic Times

Economic Times · 7m ago

Priyank Kharge, Tejasvi Surya among leaders to cheer news of US Consulate in Bengaluru

Bengaluru, India's IT capital, will finally have a US consulate office starting in January 2025. This announcement has been well-received by locals, including government officials and representatives. Bengaluru, which contributes 40% of India's IT revenue, previously required residents to travel to Chennai or Hyderabad for visa-related matters. The establishment of the consulate will strengthen ties between India and the US, foster diplomatic collaborations, and boost the state's economic prowess. The opening of the consulate has been a long-standing demand, and its realization is considered a milestone moment for Bengaluru.

Pre-market action: Here's the trade setup for today's session

Economic Times

Economic Times · 1m ago

Pre-market action: Here's the trade setup for today's session

Indian equities rebounded sharply on Monday after broad-based selling in previous sessions. Analysts suggest markets will remain watchful, considering global cues and macroeconomic data. Focus areas include defense and crude-linked stocks amid the Israel-Iran conflict, and monsoon-related sectors like fertilizers and rural FMCG due to expected above-average rainfall. The rupee strengthened, while FIIs reduced their net short positions. Foreign investors sold shares worth Rs 2,539 crore, and domestic institutional investors were net buyers at Rs 5,781 crore.

FMCG sector to see 7-9 pc revenue growth this fiscal: CRISIL Ratings

YourStory

YourStory · 1y ago

FMCG sector to see 7-9 pc revenue growth this fiscal: CRISIL Ratings

According to a report by CRISIL Ratings, the fast-moving consumer goods (FMCG) sector is projected to experience revenue growth of 7-9% in the current fiscal year. This growth is expected to be driven by increased volume and demand in both rural and urban areas. The food and beverage segment is estimated to grow by 8-9%, while personal care and home care segments are predicted to grow by 6-7% and 8-9% respectively. To expand their offerings, FMCG companies will also explore inorganic opportunities, while sustained growth in the rural economy will play a crucial role in generating consistent demand.

Trackers

Active Indian VC’s

OG Capital Email

With a hands-on approach, OG Capital aims to invest in over 20 promising...

Accel Partners Email

Early and growth-stage investments in disruptive technology companies with...

Early-stage venture capital firm investing in technology startups in India. Focus on...

Access All Trackers

Startup Showcase Winners

June 2025

Helping your parents when you are miles away

The Pit Stop Your Cravings Deserve

The next generation E-commerce platform

Enter Ongoing Startup Showcase

Top Users

Trending News on Medial

Download the medial app to read full posts, comements and news.