Releasing its quarterly report on Thursday, consumer intelligence firm NielsenIQ said that between July and September, India’s fast-growing consumer goods sector grew 5.7 percent in terms of prices and 4.1 percent in terms of volumes. Value-based growth during this period was 1.5 percent.
According to data from NielsenIQ, urban areas have experienced growth for the third consecutive quarter. However, rural demand grew at a faster rate than urban demand during the quarter. Urban demand grew by 2.8 percent, while rural demand registered a growth of 6 percent, higher than the April-June quarter (5.2 percent).
NielsenIQ also said that traditional trade volume increased 4.1 percent in the third quarter of 2024, which was better than the 3 percent growth in the previous quarter (April to June). However, despite the economic recession, modern commerce remained at the forefront of urban development.
The main reason for the growth is the increase in demand for edible oils and edible products. Roosevelt D’Souza, India Business Director, NielsenIQ, said in a press release that the Indian consumer goods industry has demonstrated resilience with consistent price growth. He noted that the 6 percent growth in rural areas this quarter has been better than that in urban areas, and small manufacturers are also making a comeback after a recent slump.
Hindustan Unilever Ltd (HUL) CEO Rohit Java also said demand for consumer goods in urban markets witnessed marginal growth in the September quarter, while rural areas are gradually improving. He also said that the company demonstrated competitive and profitable performance during this period. Hindustan Unilever said the company faces higher commodity costs due to rising crude palm oil prices. Keeping this situation in mind, the company will increase prices in a measured manner to pass the increased cost on to consumers.
Rohit Java, CEO, HUL, said, “Big cities are witnessing a downward growth trend and this is impacting all channels across all regions. We must remember that the urban economy has long been the main driver of the consumer goods industry. “We are now operating on a higher base, so there may be some normalization in the future.”
At the same time, Tata Consumer Products also told its investors that urban demand has slowed down. The company’s managing director and CEO Sunil D’Souza said that a decline in demand is being seen in urban areas. He also said: “We may not be able to adequately understand the impact of food inflation on consumer stress.”
