Fast-moving consumer goods (FMCG) sales growth were down 14.4 per cent in November compared to October largely due to a drop in the number of active kirana outlets as well as stock liquidation post Diwali, according to data by retail intelligence platform, Bizom. However, on a year-on-year basis, sales of consumer goods was up 10.4 per cent.
Active kirana outlets contracted 6.1 per cent and monthly sales per active kirana outlet were down 8.8 per cent in November.
Demand for packaged foods improved in November, driven by sales of ready-to-eat products as out-of-home consumption picked up with increased mobility and people returning to offices.
“There are many positives on the consumption side with increased out-of-home consumption driving growth of packaged food products,” Akshay D’Souza, chief growth and insight officer at Bizom, said.
Adding, “The easing of edible oil prices on account of import duty cuts could also play a key role in helping control price inflation of consumer products.”
There is a temporary challenge in stocking up at retail outlets especially for confectionery items and trade schemes are being offered to liquidate surplus festive packs.
The homecare category which includes the sale of laundry detergent and dishwashing cleaners, still continues to be under pressure due to drop in demand coupled with reduced buying of hygiene products as covid cases are on a decline in the country.
Retail outlets are expected to stock-up higher quantities of personal care products like creams and moisturisers in December due the the onset of the winter season.
Hot beverages sales like tea and coffee are also expected to rise in December.
"There is always a lull post Diwali, and due to price hikes, price-led growth is higher than volume growth in November," said Mayank Shah, category head at Parle Products. Shah also said that on a year-on-year basis, volume growth is in the low single digit and October and November cannot be compared as retailers typically stock-up ahead of Diwali and have reduced buying in the following month.
Confirming the trend, A west based distributor also said on the condition of anonymity that retailers have reduced their buying post Diwali.
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