
While rural demand trends continue to outpace urban consumption for the FMCG industry, the gap seems to be decreasing signalling early green shoots visible in urban consumption. According to data sourced from retail intelligence platform, Bizom,sales of FMCG goods in value terms in non-urban regions witnessed a growth of 13.8 per cent in the March quarter year-on-year. In Urban India, FMCG sales in value terms witnessed a growth of 10.3 per cent during this period. Categories such as packaged food, beverages and dairy products witnessed high double digit growth in value terms.
During the January-March period, beverage sales in terms of value was up 19.6 per cent compared to the same period last year. At the same time, packaged food sales in value terms grew by 16.2 per cent during this period, while commodities value sales grew by 17.9 per cent. Dairy products sales value was up 16.6 per cent, while chocolates and confectionery segment sales growth in terms of value was 9.2 per cent compared in March quarter compared to same period in 2024.
Categories such as home care and personal care witnessed growth in single digits. Sales value growth of the home care segment was pegged at 8.3 per cent. But personal care segment consumption seemed to be sluggish with sales value growth estimated at 4.5 per cent.
FMCG industry
Overall FMCG industry registered 12.4 per cent value growth as per estimates by the retail intelligence platform.
Harshit Bora, Analytics Head, Bizom said, “ In 2024, growth was predominantly fuelled by rural expansion. However, in 2025 urban growth is gaining momentum and seems to be narrowing the gap with rural growth.”
“ Retailers are now stocking larger packs in greater quantities than ever before. The number of retailers buying larger packs has risen by 6 per cent, while those buying medium packs have seen an increase of 10 per cent,” he added.
A senior executive with a packaged food company, who did not wish to be identified, said, “ Packaged food segment has begun witnessing an uptick in sales in urban markets. So we are seeing some early green shoots in urban markets. With benefits from income tax rebates and projections of a good monsoon, we expect urban markets to begin seeing some recovery in the coming quarters.
Published on April 12, 2025
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