FMCG Q3 preview: Rural consumption holds up, but urban slump may weigh on consumer goods companies
1 day, 15 hours ago

FMCG Q3 preview: Rural consumption holds up, but urban slump may weigh on consumer goods companies

Live Mint  

New Delhi: Despite some pockets of resilience in rural markets and price hikes to combat inflation, India’s consumer goods companies faced a challenging third quarter. A delayed winter added to weak urban demand woes and inflationary pressures, and several consumer goods companies are expected to report low single-digit revenue growth and margin contraction for the October-December period. On Monday, Mumbai-based consumer goods company Marico Ltd said it may report a sequential increase in volume growth for the December quarter helped by rural demand despite price increases. For the December quarter, analysts at Nuvama Institutional Equities expect fast-moving consumer goods companies to report low-to-mid single-digit volume growth. ‘Insufficient price hikes’ On Friday, Dabur India, maker of Vatika shampoo, said rural consumption of consumer goods was resilient and continued to grow faster than urban consumption in the December quarter.

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History of this topic

Another tough year for consumer staple companies?
Trending News
1 day, 4 hours ago

Another tough year for consumer staple companies?

Live Mint  

Indian consumer staple companies faced a challenging year in 2024, navigating a landscape of uneven demand. Companies are set to announce their December quarter results, which are expected to reflect price hikes, partially offset by subdued volume growth driven by weak urban demand. “While the return of price hike was a much-awaited welcome step, categories with sharp double-digit price hikes …

A sombre December manufacturing PMI curbs enthusiasm
Trending News
6 days, 4 hours ago

A sombre December manufacturing PMI curbs enthusiasm

Live Mint  

The pace of business activity in India’s manufacturing sector is slowing, dimming hopes for those rooting for a sharp rebound in gross domestic product growth. Read this | New consumption survey reveals the cracks in the economy Remember, pent-up urban consumption demand coupled with a surge in retail credit from banks were among the key factors that led to sharp …

Budget 2025: Should Nirmala Sitharaman focus on boosting consumption?
1 week ago

Budget 2025: Should Nirmala Sitharaman focus on boosting consumption?

India Today  

Union Finance Minister Nirmala Sitharaman faces a challenging economic backdrop as she prepares to present Budget 2025-26 on February 1. The Reserve Bank of India also lowered its real GDP growth forecast for 2024-25 to 6.6%, citing global uncertainties, volatile commodity prices, and fragmented economic conditions. MIDDLE-CLASS RELIEF & CONSUMPTION REVIVAL Anand Ramanathan, Partner and Leader for the Consumer Products …

Consumer goods companies go full throttle on rural hiring
1 week, 3 days ago

Consumer goods companies go full throttle on rural hiring

Live Mint  

New Delhi: India’s consumer goods companies are on a hiring spree to cater to the emerging clout of the rural buyer, who has been the sector’s saving grace this year amid rising material costs, shrinking margins, and increasing competition. Mumbai-based Godrej Consumer Products, for instance, has increased hiring in rural areas alongside introducing smaller and more affordable packs across key …

Inflation continues to hit FMCG industry, urban growth expected to slow in H1/2025: Kantar report
2 weeks, 1 day ago

Inflation continues to hit FMCG industry, urban growth expected to slow in H1/2025: Kantar report

Live Mint  

New Delhi, Dec 24 Heading towards a slowdown amid inflationary pressures, the FMCG industry's volume growth during August-October this year has dropped to 4.3 per cent from 6.4 per cent in the year-ago period, research and insight firm Kantar said in a report. Moreover, the FMCG volume growth was lower sequentially also as in the May-July period, this was 4.5 …

Rural consumption outpaces urban: How FMCG giants are changing their strategies
2 weeks, 1 day ago

Rural consumption outpaces urban: How FMCG giants are changing their strategies

Live Mint  

New Delhi: Makers of fast-moving consumer goods are increasing the availability of products in smaller packs and introducing rural-specific brands following a sustained recovery in demand in these markets and wider acceptance of branded food and confectionery. Zydus Wellness, Godrej Consumer Products and Dabur have intensified their marketing in rural areas and have prioritised the supply of affordable hair colours, …

Godrej Consumer’s profit warning intensifies gloom in FMCG sector
Trending News
4 weeks, 1 day ago

Godrej Consumer’s profit warning intensifies gloom in FMCG sector

Live Mint  

Shares of Godrej Consumer Products Ltd’s plummeted more than 8% on Monday after it warned of weaker margin and volumes for the three months to December. After market hours on Friday, GCPL said its India business is expected to report flattish volume growth this quarter. GCPL’s Indonesia business is expected to deliver mid-single digit volume growth in Q3FY25. Meanwhile, GCPL’s …

FMCG sector slowdown: Can consumer stocks stage a comeback?
4 weeks, 1 day ago

FMCG sector slowdown: Can consumer stocks stage a comeback?

India Today  

We have all been in situations where our favourite team starts strong, only to falter in the middle overs, leaving us biting our nails about whether they can stage a comeback. Monday’s steep decline in major FMCG stocks—triggered by a subdued outlook from Godrej Consumer Products—has left investors wondering: will the sector recover in Q3, or is this another misstep …

ITC, Marico to Britannia: Why are FMCG stocks under pressure today? Explained
Trending News
4 weeks, 2 days ago

ITC, Marico to Britannia: Why are FMCG stocks under pressure today? Explained

Live Mint  

Stock Market Today: FMCG stocks came under significant selling pressure on Monday, December 9 as a weak mid-quarter business update from Godrej Consumer Products raised concerns across the sector about demand revival. Indian FMCG companies are currently grappling with twin challenges: rising commodity prices and weak demand from urban consumers, which severely impacted margins in the second quarter. Godrej Consumer …

High inflation likely to keep consumer demand muted in 2025: Kantar report
1 month ago

High inflation likely to keep consumer demand muted in 2025: Kantar report

Live Mint  

New Delhi: Demand for goods is likely to remain subdued next year, as high inflation hurts real incomes, eroding consumer confidence, market research firm Kantar said in its outlook for 2025 released on Thursday. The report said that consumers would rather spend on experiences such as travel and musical concerts, than on buying goods, in a sign of growing challenge …

Urban demand growth rate fall hurts FMCG business amid rising food inflation — expert advice
1 month, 1 week ago

Urban demand growth rate fall hurts FMCG business amid rising food inflation — expert advice

Live Mint  

The FMCG sector has been one of the poorest performers over the past 18 months. Urban demand, which accounts for about 2/3rd of FMCG business, volume growth more than halved in 2024 due to an increase in food inflation, moderation in disposable income, and reduction in central & state expenditure. Also new large entrants like Reliance Consumer are eating market …

India Q2 GDP data today: From rural demand to govt capex—here are five key indicators to watch
1 month, 1 week ago

India Q2 GDP data today: From rural demand to govt capex—here are five key indicators to watch

Live Mint  

India Q2 GDP data today: The Indian economy likely moderated to 6.5 per cent in the July-September quarter of the current fiscal due to an uneven performance across sectors and a decline in private consumption, especially in urban areas amid high food inflation. India Q2 GDP: Here are five indicators to watch 1.Rural consumption Private consumption rebounded at 7.4 per …

Urban slowdown: What happened to the Great Indian Middle Class?
1 month, 2 weeks ago

Urban slowdown: What happened to the Great Indian Middle Class?

Live Mint  

Just across the road from the ruins of the massive Tughlaqabad Fort in South Delhi lies a beautifully preserved sandstone-and-marble tomb. India’s biggest fast-moving consumer goods firm Hindustan Unilever, considered a proxy for the domestic consumption story, reported a 3.86% year-on-year dip in the September-quarter profit at ₹2,612 crore, while underlying volume growth stood at 3%, lower than analyst estimates …

India's middle class tightens its belt, squeezed by food inflation
1 month, 3 weeks ago

India's middle class tightens its belt, squeezed by food inflation

Deccan Chronicle  

CHENNAI/NEW DELHI: India's city dwellers are cutting spending on everything from cookies to fast food as persistently high inflation squeezes middle class budgets, threatening the country's brisk economic growth. They are considered a key demographic both economically and politically, with middle class frustration seen as a significant factor behind Prime Minister Narendra Modi's weaker election performance this year.Asia's third-largest economy …

The week in charts: US polls, FMCG slowdown, CEO salaries
2 months ago

The week in charts: US polls, FMCG slowdown, CEO salaries

Live Mint  

Every Friday, Plain Facts publishes a compilation of data-based insights, with easy-to-read charts, to help you delve deeper into the stories reported by Mint in the week gone by. Trump trumps Despite pre-poll surveys giving Democratic candidate Kamala Harris a slight edge over Republican opponent Donald Trump, the results have scripted a historic comeback for the latter. Sony’s surge $1 …

Q2 results: How urban slump, input costs threw FMCG off gear
2 months ago

Q2 results: How urban slump, input costs threw FMCG off gear

Live Mint  

The fast-moving consumer goods sector is caught in a double whammy of rising input costs and an urban demand slowdown. Nestlé India's chairperson and managing director, Suresh Narayanan, noted that urban sales volumes were significantly hit by a "shrinking" middle class, traditionally considered the sector's core consumer segment. "The secular trend of premiumization remains intact as premium products are doing …

Mint Primer: Why the urban middle class has cut spending
2 months ago

Mint Primer: Why the urban middle class has cut spending

Live Mint  

The second quarter FY25 results of bellwether consumer companies such as Nestle India, HUL and Maruti Suzuki have revealed an urban consumption slowdown. According to the finance ministry’s Monthly Economic Report, volume growth in the fast-moving consumer goods sector has dropped from 10.1% in Q1 to 2.8% in Q2. Both Nestle India and HUL struggled to post a flat revenue …

India's Q1 GDP: Private consumption lifts mood
4 months, 1 week ago

India's Q1 GDP: Private consumption lifts mood

New Indian Express  

NEW DELHI: The GDP growth slumped to a 15-month low with 6.8% real rate of growth in the first quarter of 2024-25. As per Gaura Sen Gupta, economist, India First Bank, the growth is likely led by rural demand with improvement in labour market conditions. High frequency indicators for urban demand like FMCG sales volume and passenger vehicle sales growth …

Fast Moving Consumer Goods: Time for a strategic pivot
5 months ago

Fast Moving Consumer Goods: Time for a strategic pivot

Live Mint  

The strategic measures initiated by the government to boost agricultural incomes coupled with forecasts of a normal monsoon offer potential for a rural growth revival and turnaround in India’s fast-moving consumer goods sector. This is explained by inflation since 2012, which has eroded consumer affordability, curtailed consumption and driven consumers towards more economical options like low-unit packs, thereby intensifying the …

Volume Growth in Consumer Companies to Recover in FY25
6 months, 1 week ago

Volume Growth in Consumer Companies to Recover in FY25

Deccan Chronicle  

Chennai: Consumer companies are likely to see a recovery in volume growth in FY25 as private consumption picks up with better rural growth. India Ratings expects overall volumes to recover gradually in FY25, led by the rural segment as the staples pack is more rural or mass market focused and the weakness in real wage growth may still be fresh …

India's Rural Demand Surpasses Urban Markets in FMCG Growth
8 months ago

India's Rural Demand Surpasses Urban Markets in FMCG Growth

Deccan Chronicle  

Chennai: Rural demand for packaged consumer goods outpaced urban markets for the first time in five quarters, while the FMCG industry witnessed 6.5 per cent growth in sales volume in the March quarter, according to NielsenIQ. On the other hand, urban markets reported a 5.7 per cent year-on-year rise in demand and the growth was slower than the December quarter’s …

Slow consumption growth, fading price increases pull down FMCG stocks
10 months, 1 week ago

Slow consumption growth, fading price increases pull down FMCG stocks

New Indian Express  

NEW DELHI: Slow growth in consumption and the inability of large companies to go for price hikes amid fierce competition from small/regional players is weighing down heavily on fast-moving consumer goods stocks. In the first two months of calendar year 2024, shares of top FMCG firms have fallen 4-19% while the sectoral index – Nifty FMCG – is down by …

‘FMCG sector seeing premiumisation’
10 months, 4 weeks ago

‘FMCG sector seeing premiumisation’

New Indian Express  

NEW DELHI: Nestle is seeing continued uptick in the premium products as a result of the ‘Wealth Effect’. Its managing director Suresh Narayanan in an interaction with the media on Thursday said those in the middle and upper middle class have the income and feel good about buying whatever they want to. While denying the impact of consumption slowdown on …

Rural demand slows down for FMCG
1 year, 2 months ago

Rural demand slows down for FMCG

Live Mint  

Consumer goods companies pointed to sluggish recovery in rural demand in the September quarter and said demand will improve “gradually” even as urban markets charged ahead helping companies lift quarterly volumes. While urban sentiment improved sequentially, instances of higher food inflation and uneven rainfall distribution led to a slower-than-expected pace of recovery in rural demand, the company said. In an …

As FMCG industry sees demand revival, buying spree continues in Nomura-backed FMCG player Mishtann
1 year, 6 months ago

As FMCG industry sees demand revival, buying spree continues in Nomura-backed FMCG player Mishtann

India TV News  

India's consumption growth story has seen a revival in 2023, according to a PTI report by data analytics firm NIQ. The rural market, which contributes around 35 per cent of FMCG sales, has witnessed a revival in volumes with the RBI measures to tame inflation yielding fruitful results. As the rural market sees significant spike in demand and the urban …

Consumer goods makers bet on rural recovery to lift profits
1 year, 10 months ago

Consumer goods makers bet on rural recovery to lift profits

Live Mint  

A nascent revival in rural demand is likely to prop profits at Indian consumer goods companies in the March quarter, as improving income and credit disbursal allow buyers to spend more on branded oils, tea, snacks and soaps. Rural consumers - hit especially hard in the aftermath of the pandemic - typically make up about two-thirds of consumer goods companies' …

Consumer durables could take a while to charge up
1 year, 11 months ago

Consumer durables could take a while to charge up

Live Mint  

For consumer durables companies, the seasonally weak December quarter means financial results would be tepid. View Full Image Graphic: Mint Thus, Crompton Greaves Consumer Electricals Ltd and Orient Electric Ltd’s fans volumes are expected to see pressure in Q3. In Q3, analysts at PhillipCapital estimate a year-on-year revenue growth of 10% and earnings drop of 0.1% for consumer durables companies …

FMCG firms shield margins in times of high inflation
2 years, 4 months ago

FMCG firms shield margins in times of high inflation

Deccan Chronicle  

Chennai: Inflation seldom bites into the profit margins of fast moving consumer goods companies as they have the leverage to raise product prices to protect themselves from rising raw material prices. Cosmetics, toiletries, soaps and detergents companies recorded their best operating profit margin at 21.7 per cent in 2020-21 even as sales grew by 13.3 per cent. Around 15 of …

Top FMCGs bounce back on personal care, winter items
3 years, 11 months ago

Top FMCGs bounce back on personal care, winter items

Live Mint  

India’s top fast-moving consumer goods companies such as Dabur India, Marico Ltd, Emami Ltd, and Jyothy Labs reported strong December quarter earnings, helped by an improvement in urban markets and a strong demand for winter products and personal care brands. Most companies reported strong domestic volume growth during the quarter, though inflationary pressures on key raw materials pushed them to …

Middle and Rural India Driving 'Strategic Priorities' of FMCG Companies: Report
4 years, 3 months ago

Middle and Rural India Driving 'Strategic Priorities' of FMCG Companies: Report

News 18  

New Delhi: The middle and rural India, which quickly recovered and bounced back to pre-COVID-19 level, is driving the "strategic priorities" of the FMCG companies, according to market research firm Nielsen. "This increased focus on Middle India and Rural was also reiterated as the majority of CXOs claim that they are increasing focus on Middle India and Rural markets over …

FMCG companies to drive focus on middle India: Nielsen
4 years, 3 months ago

FMCG companies to drive focus on middle India: Nielsen

Live Mint  

NEW DELHI: Middle and rural India will drive business strategies of fast moving consumer goods companies over the next few quarters as smaller towns and cities help push demand for packaged consumer goods, market researcher Nielsen said in its fifth FMCG forecast on Friday. Though some said metros remain important because of the contribution and the presence of competition, but …

FMCG firms to stay in the slow lane this year
4 years, 5 months ago

FMCG firms to stay in the slow lane this year

Live Mint  

Market researcher Nielsen now projects India’s packaged consumer goods sales to shrink or remain little changed from last year, slashing its rather optimistic 5-6% growth estimate made on 30 April on hopes that the sector would better withstand the fallout from the coronavirus pandemic. “Despite increased household consumption, even in the dairy sector, overall growth would remain flat for the …

India gears up for the new normal as consumer behaviour shifts
4 years, 7 months ago

India gears up for the new normal as consumer behaviour shifts

Live Mint  

On 24 March, the government effectuated one of the world’s strictest lockdowns to combat the spread of covid-19, which changed consumer behaviour and purchasing patterns. According to a World Economic Forum and Bain & Co. report, titled Future of Consumption in Fast-Growth Consumer Markets – India, released in January 2019, about 66% of India’s overall consumption is accounted for by …

Why this economic slowdown is serious
5 years, 4 months ago

Why this economic slowdown is serious

India Today  

Suppose you inherited a farmland and a house. FMCG major Hindustan Lever reported volume growth of 5.5 per cent in April-June quarter compared to 12 per cent last year. Asian Paints saw a volume growth slump from 12 per cent in April-June quarter last year to 9 per cent this year. Bank's lending to MSME At macro-level, lending by banks …

Moderate demand dampens Q4 results for FMCG firms
5 years, 8 months ago

Moderate demand dampens Q4 results for FMCG firms

Live Mint  

New Delhi: A consumption slowdown dampened sales in the March quarter at some of India’s largest consumer goods firms, as a slow offtake of goods in rural markets and an elongated winter forced companies to report moderate volume growth. India’s largest FMCG firm Hindustan Unilever Ltd., biscuits maker Britannia Industries Ltd., along with Dabur India Ltd., Marico Ltd and Godrej …

FMCG no longer fast moving as rural demand fizzles out
5 years, 8 months ago

FMCG no longer fast moving as rural demand fizzles out

Live Mint  

Mumbai: India’s consumption engine is losing steam as rising prices and lower purchasing power in the countryside hit the brakes on demand growth. The fast-moving consumer goods industry this year will grow at least two percentage points slower than in the last quarter of 2018, consumer insights firm Nielsen said on Wednesday. Historically, rural has grown 3-5% points faster than …

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