Urban FMCG market rising as rural market sees lower growth
2016’s GDP reaching 6.21 per cent fell short of the target of 6.5 per cent but CPI was controlled at 2.67 per cent, lower than the targeted 3-4 per cent. Retail sales of consumer goods also maintained double digit growth, at 10 per cent on average. The Urban 4 key cities FMCG market rebounded compared to the same period last year. Meanwhile, the rural FMCG market continued to decelerate, driven by lower purchasing volumes. The beverage sector was the fastest growing sector in 2015 but this wasn’t replicated in 2016, as shopping frequency fell in both Urban and Rural markets. Packaged Foods and Home Care continued to shine in Urban markets while Dairy and Personal Care again led growth in Rural markets.
