The struggling FMGC industry in the country got a boost in February as Covid-19 scare prompted people to panic-buying essential products including hygiene products.
As per market research company Nielsen’s findings while sales of hygiene products such as hand sanitisers, floor cleaners, and toilet cleaners shot through the roof, the overall FMCG category, including food and non-food
items witnessed a value growth of 8% in February over the same period last year. The preceding months November, December, and January saw the overall category grow by 6%, 5% and 5% respectively, it said.
Prasun Basu, president-South Asia for Nielsen said, “Indian FMCG Industry growth rate has been on a downward trajectory for the last three quarters, it is only in the month of February 2020 that we saw a flattening of the growth trend. The fact that it is a leap year and February had one extra day cannot be overlooked.”
Talking about how the FMCG category will pan out after the lockdown, Basu said, “You will see skyrocketing sales of certain categories and they will be trading it off with other categories. You will see high growth, low growth, and
de-growth across categories. That’s what we see happening in the month of April and some of May as well.”
“On the other hand, as we come into the new normal, people will try to make up for the lost ground and that’s where you may see some acceleration coming in. Also, there may be some small-ticket indulgence categories that
may pick up due to the stressful times,” he added.