Nielsen predicts revival of FMCG growth; some differ as Covid-19 cases rise

 In an update last month, Nielsen said the January-March 2021 period also looked strong.

The Rs 4.3-trillion fast-moving consumer goods (FMCG) market in India will revive this calendar year in line with the trend visible across Asia, market researcher NielsenIQ said on Thursday. The prediction was part of a broader outlook the agency released for the Asian region comprising China, India, Korea, Singapore, and Thailand.

India witnessed a nationwide lockdown a year ago, hurting FMCG growth. While the January-March 2020 period saw the market grow 3 percent, it contracted in April-June, reporting a 19 percent fall.

Since then, the market mo­ved up, Nielsen said, growing 0.9 percent in the September quarter and 7.1 percent in the December quarter. In an update last month, Nielsen said the January-March 2021 period also looked strong.

“2020 was a challenging year with most Asian markets experiencing a decline or lower growth in FMCG. We believe the pace will pick up and normalize this year,” Justin Sargent, president, retail intelligence, NielsenIQ Asia, said.

But some firms differ with this view following a surge in Covid-19 infections in India. “Certainly, packaged foods and consumer staples will do well in a situation where lockdown curbs will increase because of a second Covid wave,” said Mayank Shah, senior category head, Parle Products. “But discretionary segments will take a hit because the attention of consumers will be on essentials rather than non-essentials. So, FMCG growth is not likely to be even if viewed category-wise.”