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FMCG Giants Lose Ground in Cities to Local Players
19 Jan
Summary
- Listed FMCG companies are losing urban market share.
- Overall urban consumption is increasing significantly.
- Rural demand is showing signs of improvement.
Fast-moving consumer goods (FMCG) companies listed on stock exchanges are witnessing a reduction in their market share across Indian cities. This trend emerges even as overall urban consumption shows a positive trajectory. Unbranded and smaller local players are reportedly gaining ground, capturing a larger portion of this expanding urban market.
Meanwhile, demand in rural areas is demonstrating an upward trend, attributed to various overarching economic developments. Industry experts suggest that the impact of recent policy adjustments, such as changes to taxation and the goods and services tax (GST), is gradually filtering through the supply chain and influencing consumer behavior.
Data indicates a quarterly uptick in FMCG volumes from September onwards, with annualised growth expected to surpass 5% in the coming quarters. This anticipated growth is linked to revised pricing strategies and adjustments in product packaging sizes reaching consumers, signaling a gradual but confident recovery for the sector.
