The Indian FMCG industry witnessed a consumption slowdown in urban markets and de-growth in rural areas in 2021 as the sector was hit hard by higher inflation levels forcing companies to go for successive price increases, according to data analytics firm NielsenIQ.
In 2021, the FMCG industry had to go for double-digit price growth in three consecutive quarters to protect its margins, which converted into a price-driven growth of 17.5 per cent in comparison to a year ago in 2020.
Even in the October-December (Q4/2021) quarter, the FMCG industry has witnessed a consumption de-growth of 2.6 per cent due to inflationary pressure, and other macroeconomic factors, said the FMCG Snapshot released by NielsenIQ's Retail Intelligence team on Wednesday.
"Higher inflation levels during 2021 have led to three consecutive quarters with double-digit price increase resulting in consumption slowdown in urban markets, and consumption degrowth in rural markets," it said.