Stories
FMCG Volumes Decline Amid Macro Headwinds, Rising Costs: NIQ Report
M
Moneycontrol•27-09-2026, 15:53
FMCG Volumes Decline Amid Macro Headwinds, Rising Costs: NIQ Report
- •The Indian FMCG market experienced a 2% volume decline in April-June 2026, despite a 0.8% value growth driven by price increases, according to NIQ.
- •Rural markets were particularly affected, with a 5% volume fall and 2.9% value decline, attributed to synchronized cost, mobility, and rural-income shocks.
- •Increased input costs, low distribution due to rising fuel prices, and declining consumer confidence contributed to the slowdown, especially in rural areas.
- •The volume slowdown broadened, impacting 68% of FMCG categories, with 38% experiencing over 5% volume decline, including washing powder and refined oils.
- •Modern trade and e-commerce channels showed significant growth, with e-commerce recording 34.8% volume growth, offsetting weakness in traditional trade.
Key Questions Answered
In the April-June period of 2026, the Indian FMCG market experienced a value growth of 0.8 percent year-on-year, while overall volumes registered a 2 percent decline.
While traditional trade suffered a 4.2 percent decline in value and a 6 percent fall in volumes, e-commerce achieved 57.7 percent value growth and 34.8 percent volume growth, and modern trade recorded 15.5 percent value and 17.5 percent volume growth.
Rural markets suffered due to consumer price and wholesale inflation, crude oil prices crossing $100 per barrel, rising freight, packaging, and fertilizer costs, alongside a 40 percent rainfall deficit that delayed sowing.
