FMCG Demand Rebounds in Q4, Boosted by Summer Essentials and Premiumisation
India’s Fast-Moving Consumer Goods (FMCG) sector witnessed a notable recovery in the January–March quarter, registering a 6.5% year-on-year volume growth, according to a report by NIQ India. This marks an acceleration from the 6.1% growth seen in the previous quarter and reflects increasing consumer demand alongside strategic manufacturer pricing.
The growth was largely propelled by higher off-take of summer-related products, including beverages, juices, ice creams, and personal hygiene items, particularly in urban markets. The early onset of summer weather also encouraged increased stocking and consumption, aiding momentum across categories like packaged water and skincare products.
Rural markets, which have seen prolonged demand sluggishness, showed a modest recovery with 6.2% volume growth, up from 5.8% in the previous quarter. While still trailing urban demand, the uptick suggests early signals of stabilization in disposable incomes and rural consumption.
Urban areas remained key drivers of FMCG growth, posting a 6.7% year-on-year increase. The food and impulse segments led the charge within both value and volume metrics, while discretionary products benefited from consumer willingness to spend on indulgence and convenience items.
Value growth for the sector stood at 6.2% in Q4 compared to 5.9% in Q3, attributed in part to premiumisation trends and calibrated price hikes by manufacturers navigating inflationary pressures and margin recovery efforts.
Across product categories, the report highlighted strong double-digit value growth in items such as beverages, notably powdered and carbonated drinks, along with hair cleaners and skincare. This suggests a shift in consumer preference toward health, wellness, and seasonal care products.
Speaking on the outlook, NIQ India anticipates further traction in rural demand in the upcoming quarters, provided macroeconomic indicators such as monsoon performance and agriculture output remain favourable. Meanwhile, premiumisation and innovation will continue to play a significant role in shaping urban consumption patterns.
For FMCG stakeholders, the latest data reaffirms the importance of agile portfolio strategies and region-specific product assortments. Brands are expected to leverage seasonal cues, local preferences, and pricing flexibility to sustain momentum in a competitive market environment.