India’s fast-moving consumer goods (FMCG) sector recorded a 10.6% sales growth in the October-December quarter of 2024, primarily due to strong rural demand and rising prices of essential products like wheat and edible oil, according to NielsenIQ’s latest update. Despite inflationary pressures leading to a 3.3% average price increase, overall sales volume grew by 7.1%, highlighting continued consumer demand. The festive season also played a crucial role in driving purchases, with smaller and local businesses outperforming major FMCG brands by maintaining steady volume growth.
Rural regions spearheaded this expansion, with sales volume climbing 9.9% during the December quarter—an increase of 5.7% from the previous quarter. In contrast, urban markets registered a sequential growth of 2.6%, reinforcing a trend where rural consumption outpaced urban demand. This surge in rural sales can be linked to government initiatives such as employment programs and agricultural support measures, which boosted consumer spending.
The report highlights that rural India has been expanding at nearly twice the rate of urban areas, where economic sluggishness has persisted over the past four quarters. As local manufacturers continue to drive market growth, their competitive pricing and accessibility in rural regions contribute to shifting consumption patterns within the FMCG sector.
