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FMCG industry shows signs of rebound in June: Nielsen

FMCG industry shows signs of rebound in June: Nielsen

FMCG industry shows signs of rebound in June: Nielsen
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By Priya Sheth  Jul 17, 2020 3:07:35 PM IST (Published)

After three months of the lockdown, the FMCG industry has exhibited signs of a rebound in June to pre-COVID levels. This recovery in growth levels has been seen in both urban and rural areas, said market research firm Nielsen.

After three months of the lockdown, the FMCG industry has exhibited signs of a rebound in June to pre-COVID levels. This recovery in growth levels has been seen in both urban and rural areas, said market research firm Nielsen.

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During these periods, traditional trade contributed to 88 percent of the sales and about 10 percent sales took place through e-commerce. Beauty as a category has seen a sharp recovery in June and daily use categories have returned to normalcy, according to Nielsen.
Within the beauty category, deodorants, hair colours and skincare saw good recovery. Staples and categories like packaged atta, refined oils and cheese continue to trend in terms of consumption.
"Consumers are willing to spend more on immunity boosters and hygiene categories. This is not a short term ask or a single quarter ask but a longer duration trend," said Sameer Shukla, West Market Leader, South Asia, Nielsen Global Connect.
"Brands are also innovating and including ingredients like ginger, turmeric in regular product categories as consumers have become health conscious," he added.
The coronavirus outbreak in the country has negatively impacted household income for Indians.
About 60 percent claimed that COVID-19 has negatively impacted their household income and monthly household expenses have gone up by 3 percent, Nielsen said in an earlier report. It added that those surveyed expect business activity to rebound in the third quarter of FY21.
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