FMCG Volumes Decline in India Amid Weak Rural Consumption
What happened
In the second quarter, FMCG volumes fell 2% year-on-year, while value growth was limited to 0.8%. The slowdown was widespread, with 68% of FMCG categories recording volume declines. Rural volumes specifically fell 5% in the quarter, contrasting with marginal volume growth of 0.1% in urban areas.
From indiatimes.com
Why it matters
The decline reflects broader consumer pressure, as consumer confidence indices weakened in both urban and rural areas. Indicators of economic activity also softened, including a 7.2% year-on-year drop in toll collection growth.
From indiatimes.com
Who's involved
- Uttar PradeshState where the observed decline in FMCG consumption is taking place
- AligarhCity located within the state of Uttar Pradesh
- AyodhyaCity located within the state of Uttar Pradesh
- VaranasiCity located within the state of Uttar Pradesh
- LucknowCapital city of Uttar Pradesh
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Uttar PradeshSpeculative
The state might face reduced revenue or sales due to its high contribution to the total FMCG volume decline