While there has been a general slowdown in demand for Fast-Moving Consumer Goods (FMCG), consumption in South India grew by 9.6 per cent in December compared to November. According to Bizom, a retail intelligence platform that tracks consumer product sales across 7.5 million outlets, South India witnessed the highest growth in FMCG followed by Western India with 0.9 per cent growth.

While southern and western regions witnessed growth, the North-East witnessed a dip of 21.3 per cent and central India by 12.8 per cent. While FMCG sales in December witnessed a month-on-month increase of 1.4 per cent, it dipped by 4.7 per cent year-on-year.

The increase in FMCG sales in the South is owing to the spike in branded commodity sales and increased stocking by kiranas post festive season.

Rohtak in Haryana witnessed the highest spike in FMCG sales followed by Gulbarga in Karnataka and Kolhapur in Maharashtra in December.

“With strong branded commodity sales, we see strong double-digit month-on-month growth in Andhra Pradesh and this has made it the number one state by sales value for FMCG sales in December. Products in Home Care, Skin care, Branded commodities, and essential food products are getting good shelf space as Kiiranas look to restock post the festival season,” said Akshay D’Souza, Chief of Growth & Insights, Bizom.

Inflationary fears in rural areas have impacted FMCG sales in December.

South India shift

As FMCG sales continue to grow in South India, companies are also looking to expand their base there. “We have developed particular products for the South Indian market and are doing the same for Western India. Acceptance of our rice products in South India is high and we have done repackaging of products in the states to cater to local needs,” said Shammi Agarwal, Director of Pansari Group to buisnessline earlier.