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Demand falls as price hike forces consumers to go for smaller packs

Sales in urban areas in May were down 16 per cent and those in rural parts 16.6 per cent (against April)

The FMCG sector lost out despite a doubling in the number of FMCG companies in the index in the last three years.
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Sharleen D’Souza Mumbai
Fast-moving consumer goods (FMCG) companies in May saw urban and rural demand decline against April because consumers tempered purchases while firms focused on increases in prices.

Sales in urban areas in May were down 16 per cent and those in rural parts 16.6 per cent (against April), according to the data from Bizom. During the month, FMCG sales went down 16.5 per cent in value terms and active kirana growth was down 2.5 per cent against April.

However, compared to last year, value growth was up 32.9 per cent and active kirana growth 43.7 per cent (May 2021 was a peak pandemic