Covid-19 impact: Nielsen slashes 2020 growth forecast for FMCG sector to 5-6% | Mint
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Business News/ News / India/  Covid-19 impact: Nielsen slashes 2020 growth forecast for FMCG sector to 5-6%
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Covid-19 impact: Nielsen slashes 2020 growth forecast for FMCG sector to 5-6%

Nielsen said an extended lockdown will lead to a shift in consumption patterns
  • In Jan-Mar, India’s FMCG sector grew 6.3% in value terms, down from 13.8% growth in the year-ago period
  • FMCG companies, like others, have been hit by covid-19 but the impact has been a bit muted because of demand for household essentials. (Photo: Ramesh Pathania/Mint)Premium
    FMCG companies, like others, have been hit by covid-19 but the impact has been a bit muted because of demand for household essentials. (Photo: Ramesh Pathania/Mint)

    NEW DELHI: Nielsen on Thursday slashed its 2020 growth outlook for India’s fast moving consumer goods sector—that is incidentally registering seeing demand as shoppers stock up on household essentials—to 5-6% from its earlier projection of 9-10% as it expects the ravaging impact of covid-19 to play out through the year.

    Nielsen follows a January to December calendar.

    The researcher said the pandemic, which has seen India enforce a strict lockdown, bringing economic activity to a near standstill, will have widespread impact in the months to come.

    Nielsen researchers added that an extended lockdown will lead to shift in consumption habits and reduced manufacturing activity will have implications on employment. A combination of factors, said Nielsen, will impact disposable income and demand among shoppers in India.

    The sectoral outlook comes in the backdrop of the industry witnessing to early signs of recovery in January and February, but a lockdown at the end of March, it said, impacted quarterly growth rates too.

    In the three months ended March, India’s fast moving consumer goods sector grew 6.3% (including e-commerce) in value terms, down sharply from the 13.8% growth the sector saw in the year-ago period. While January and February saw growth rates improve from the December quarter, the spread of covid-19 in March hit sales of fast moving consumer goods. In March, volumes grew a mere 0.5%, while the sector clocked a value growth of 4%.

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    ABOUT THE AUTHOR
    Suneera Tandon
    Suneera Tandon is a New Delhi based reporter covering consumer goods for Mint. Suneera reports on fast moving consumer goods makers, retailers as well as other consumer-facing businesses such as restaurants and malls. She is deeply interested in what consumers across urban and rural India buy, wear and eat. Suneera holds a masters degree in English Literature from the University of Delhi.
    Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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    Published: 30 Apr 2020, 02:46 PM IST
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