Rural India contributes 36 per cent to overall FMCG spends and has historically been growing around 3-5 per cent points faster than urban. The growth forecast for Q1 2020 (Jan-Mar 2020) stands in the range of 7.2 per cent in the same quarter of 2018.Nielsen expects FMCG value growth in Q4 2019 to be in the 6.The main cause of the slowdown was rural growth, which for the first time in seven years dropped below urban.3 per cent as of January 2019. Lower GDP growth and growth forecast too have an impact on FMCG. Rural was growing at 5 per cent in Q3’2019, which is one-fourth as compared to 20 per cent in Q3’2018. Value growth in Fast Moving Consumer Goods market has dropped to single digits in September quarter as rural growth fell below urban for the first time in seven years, according to Nielsen. end-of Tags: fmcg growth.Small manufacturers have seen the biggest drop in cumulative distribution growth where it has moved from 18 per cent in 2018 September quarter to no growth in Q3’2019. Small player exits have increased by 33 per cent and new entrants in the market have fallen owing to strong inflationary pressures and increasing input prices. ‘However we are now finally seeing early signs of the declining trends being arrested.3 per cent, down from 16.FMCG growth generally moves in the opposite direction of inflation trends. This has been on account of increasing affordability, availability and conversion of commodity to branding resulting in higher demand.9 per cent, down from 13.Small players account for nearly one-third of the sales in rural India as they provide better value for money offerings.5 per cent,’ said Khiani.4 per cent. Rural inflation is touching 3.9 per cent in January 2019. Chennai: Value growth in Fast Moving Consumer Goods market has dropped to single digits in September quarter as rural growth fell below urban for the first time in seven years, according to Nielsen. However in recent times, rural growth was seen slowing down at a much faster rate compared to urban.In September quarter,

FMCG market clocked a value growth of 7. Large manufacturers’ cumulative distribution growth has halved. The growth rate for small manufacturers has slumped by 23 per cent. Inflation has already touched the 4 per cent in September 2019 from a low of 1. However, price led growth sustained at 3. Meanwhile, urban market too was growing slower at 8 per cent as against 14 per cent in Q3’2018.2 per cent in Q3’2018.5 — 7.2 per cent from a low of 1.Slowdown in rural market halves FMCG growth, slips to 7-year low --> China lipstick aluminum tube BooksScienceHoroscopeAge on SundayDelhi AgeMumbai AgeDecafDiscourse360 DegreeEditors' PicksJust InPlay Games Business In Other News18 Oct 2019Slowdown in rural market halves FMCG growth, slips to 7-year low Business, In Other News Slowdown in rural market halves FMCG growth, slips to 7-year low THE ASIAN AGE.2 per cent in the same quarter of 2018. | SANGEETHA G Published: Oct 18, 2019, 2:20 am IST Updated: Oct 18, 2019, 2:20 am IST In September quarter, FMCG market clocked a value growth of 7.Growth in Q3’2019 sales per store in rural areas shrunk one-fourth of Q3 2018 which reflects a significant drop in demand among rural consumers.According to Nielsen, the growth trend continues to be dampened by the drop in consumption which has moved to 3.5 — 8.3 per cent, down from 16.5 per cent range. In addition, rural distribution growth continued to inch downwards, said Sunil Khiani, Head — Retail Measurement Services — Nielsen South Asia

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