New Delhi: FMCG industry growth slowed to 3.8 percent in the June quarter due to economic disruptions. This was reflected in the low sales of packaged salt, wheat flour and palm oil. The industry growth was 7.5 percent in the same period last year, while the growth rate in the March quarter was 6.5 percent.

According to data analytics firm NielsenQ, urban consumption growth declined to 2.8 per cent from 5.7 per cent in the first quarter of the current fiscal year, while rural growth declined to 5.2 per cent from 7.6 per cent in the previous quarter.

Rural areas are ahead of urban areas

Rural areas are ahead of urban areas in most parts of India in terms of volume growth rate. Supermarkets, hypermarkets and large format stores grew by 10.9 percent year-on-year. However, it was slower than the March quarter.

Sales growth of traditional businesses such as grocery stores has slowed down and fell to 3.1 percent in the June quarter from 5.6 percent in the previous quarter. Talking about the non-food category in FMCG, growth was 7.6 percent in the June quarter.