FMCG quantity progress slows to five.1% in March quarter; rural markets drive progress whereas metros drag quantity

The amount progress of India’s FMCG trade has slowed down within the March quarter to five.1%, pushed by elevated shopper purchases of small-value packs, in line with the most recent report from information analytics agency NielsenIQ.
Quantity progress is slowing throughout classes, and non-food segments are nonetheless outpacing meals within the FMCG sector. The trade reported a quantity progress of 6.1% within the March quarter of 2024.
Furthermore, persevering with the traits from the final 5 consecutive quarters, the agricultural market, which is principally a small economic system pack models market, continued to develop sooner than the city market. Nonetheless, its progress has additionally slowed down.
“In Q1 2025, rural shopper demand grew at a slower tempo in comparison with Q1 2024, but it remained 4 occasions sooner than progress in city areas, the place consumption additional decelerated. Rural markets continued to outperform city counterparts throughout most areas of India,” it mentioned.
The FMCG trade recorded greater unit progress than quantity progress within the March quarter, indicating a shopper choice shift towards smaller pack sizes, in line with the most recent NielsenIQ FMCG quarterly snapshot.
As well as, small gamers — largely unbranded — have gained floor, with double-digit quantity progress, helped by the resurgence of the agricultural market, inflation, and altering market dynamics.
General, the FMCG sector reported an 11% year-on-year progress for the March quarter, by which quantity progress contributed 5.1% together with a 5.6% improve in costs.
Moreover gross sales quantity by conventional commerce, which incorporates kirana and neighbourhood outlets, has elevated. Within the metro market, quick-commerce additionally strengthened its place.
“Meals consumption progress slowed to 4.9% in Q1 2025 from 6% in This autumn 2024, primarily as a consequence of decreased volumes in staple classes like edible oils and Palm Oil, which noticed value will increase,” it mentioned.
On a year-on-year foundation meals consumption progress noticed a slight enchancment from 4.4% in Q1, 2024.
Within the March quarter, the meals sector reported 7.2% value progress, in comparison with 0.9% of the corresponding interval a yr in the past.
Equally, the Residence and private care (HPC) classes skilled a consumption progress of 5.7% in Q1 2025, pushed by greater demand in rural areas. Nonetheless, this progress continues to be decrease than the ten.8% quantity progress within the corresponding quarter of the earlier yr.
Whereas “Over-the-counter classes, equivalent to rubefacients and analgesics, noticed a 14% progress in worth gross sales in Q1 2025, pushed by a ten.4% improve in costs,” the report mentioned. E-commerce continues to strengthen its presence, considerably impacting the share of offline channels, together with fashionable commerce (equivalent to malls) and conventional commerce.
“This progress is basically volume-driven, supported by growing on-line shopper penetration, extra buy events, and growing basket sizes,” it mentioned.
In eight metros, e-com reported a 13% improve within the prime 8 metros (based mostly on information collected from 72 classes), whereas its all-India city progress was at 5%.
March quarter additionally witnessed “regular good points” for small producers, that are main the way in which in driving consumption, supported by regular quantity progress in each Meals and HPC classes, it mentioned.
“In distinction, bigger gamers are experiencing slower quantity progress, which has halved in comparison with This autumn 2024. Low base, rural progress, and easing out inflation are serving to small gamers to outpace FMCG progress,” the report mentioned.
Small FMCG producers having a turnover beneath ₹100 crore per yr reported a quantity progress of 11.9%, and mid gamers with a turnover between ₹100 to ₹1,000 crore reported a quantity progress of 6.4%. Massive producers as much as ₹5,000 crore recorded a 5.3% quantity progress.
Nonetheless, massive FMCG makers, the giants with over ₹5,000 crore turnover, had 1.6% quantity progress, which is way decrease than the 8.1% quantity progress. Although they nonetheless management 46% of the gross sales.
NielsenIQ India Head of Buyer Success, FMCG, Roosevelt Dsouza mentioned, “The FMCG sector is displaying blended indicators — whereas quantity progress is slowing throughout classes, non-food segments are nonetheless outpacing meals. Inflation is easing general, however excessive edible oil costs are conserving staples costly. The agricultural markets proceed to drive progress, whereas city metros proceed to see a shift towards e-commerce with greater shopper engagement.”
Revealed – Might 08, 2025 11:46 pm IST