Consumer goods market records 21% growth in October

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The consumer goods market grew 21% in October year on year on the back of increased sales in packaged food, commodities and discretionary categories even as the home care segment recorded lower sales, according to a media report.

The Economic Times, quoting India, Deepak Iyer, president, India, Mondelez International, reported that the company had a very good festive season this year.

Festival season this year started in October that boosted kirana orders, according to the report.

Festivals come early this year

All categories, except home care, surged between 13-35%, according to the report which quoted Bizcom. Home care registered an 8% decline.

Iyer said there is a favourable consumer feeling right now due to vaccine uptake, pent-up demand and increased mobility

According to Bizom, commodities recorded 35% growth, while beverages saw 22% growth. There was strong demand for commodity products in the festival season, especially edible oils, Akshay D’Souza, chief of growth and insights at Mobisy Technologies, which owns Bizom, is quoted as saying. A cut import duty on cooking oils helped ease prices, he added.

Compared with September, FMCG sales growth in November was 5.4%. While cities expanded 6%, it was 5% in villages.

Bullish on rural market

Companies are confident the rural market will continue to drive growth.

According to the report, companies had said rural growth numbers were lower due to high base, while cities witnessed higher demand in the wake of easing of lockdown rules.

Cities were closed during the initial Covid lockdown, but business continued in rural regions, the report quoted Godrej Consumer Products managing director Sudhir Sitapati as saying.

He added that there is no specific rural slow down, even though rural numbers are lower. Rural is growing as fast as urban, but can’t say the same when adjusted for a two-year period, he further stated.