COVID-19 pulls down FMCG growth: Nielsen
Sector sees major impact in March
- In the first quarter of 2020, India’s fast moving consumer goods (FMCG) industry grew at 6.3% — across traditional trade, modern trade and e-commerce — down from 7% in the previous quarter, largely due to the effect of COVID-19 felt in the month of March.
- The initial two months of the quarter — January and February — saw signs of recovery before the COVID-19 pandemic impact led to a fall in the growth rate.
- The industry clocked a growth of 7.5% in January and February.
- This growth was significantly impacted in March, with the initial effect of COVID-19 bringing growth down to 4%. This led to a slowing down of overall growth for the quarter.
- In terms of distribution of growth across urban and rural markets, the study found that smaller towns in India with less than 10 lakh population witnessed a significant slowdown in March.