Fast-moving consumer goods (FMCG) industry’s volume grew by 6.4 per cent year-on-year in the October-December 2023 quarter with an uptick in consumption that was seen both in urban and rural areas, according to a report by analytics firm NielsenIQ.

The report also highlighted a narrowing consumption gap between urban and rural markets for the first time in 2023.

Higher volume and a recovery in rural markets helped the FMCG industry log 6 per cent growth in value terms, the report has said.

In 2024, the Indian FMCG industry is poised to register growth between 4.5 per cent and 6.5 per cent on the basis of strength of the sector and the Indian economy, report adds.

However, sequentially, the volume growth declined in the October-December quarter from the previous September quarter due to moderation in consumption within the FMCG sector.

“In rural markets, there is a sequential slowdown in volume growth, with consumption experiencing a slight decline during this quarter (Q42023) compared to Q32023. However, the decline is more pronounced in urban markets,” NielsenIQ India FMCG Quarterly Snapshot has said.

In the December quarter, the FMCG industry had consumption uptick of 6.8 per cent year-on-year in the urban market and 5.8 per cent in the rural market, which has been lagging for several quarters.

"For the first time in 2023, consumption gaps between urban and rural markets are narrowing down. The north and west regions are contributing to this phenomenon,” Roosevelt Dsouza, NielsenIQ Head of Customer Success (India), has said.