Weak urban demand weighs on FMCG firms in Q2 despite rural market recovery

Urban demand grew by 2.8 per cent, while rural demand increased by 6 per cent, up from 5.2 per cent in the April-June quarter

Even as rural markets continued to recover, urban markets became a challenge for fast-moving consumer goods (FMCG) companies in the July-September quarter (Q2) of 2024-25 (FY25).

 

In their post-results commentary, companies highlighted the stress in urban India. NielsenIQ’s latest data shows that India’s FMCG sector grew 5.7 per cent by value and 4.1 per cent by volume in Q2FY25, driven primarily by rural demand. Rural demand grew at twice the pace of urban demand during this period.

 

Urban demand registered a growth of 2.8 per cent, while rural demand rose by 6 per cent, up from 5.2 per cent in