The consumption of FMCG goods in south Indian States grew by 25.3 per cent year-on-year in Q2 of FY23, according to data from retail intelligence platform Bizom, that tracks consumer product sales from across 7.5 million outlets. This is despite the overall FMCG volumes dipping in September compared to August.

FMCG players witnessed an 18.4 per cent growth in the eastern region, followed by 13.4 per cent in the central region and 2 per cent in the north.

“For the July to September quarter, the south has shown strong growth driven by strong commodity sales, especially in Telangana and Andhra Pradesh. We can expect a strong stocking in October as consumption drives have increased social interactions and gifting during Dussehra and Diwali,” said Akshay D’Souza, Chief of Growth & Insights, Bizom.

Rural sales dip

The overall FMCG sales in rural India witnessed a dip of 14.3 per cent month-on-month in September. Meanwhile, the urban areas witnessed a growth of 1.1 per cent.

Commodities witnessed a significant drop of 14.5 per cent m-o-m followed by homecare products (-8.6 per cent) and packaged foods (-6.7 per cent).

West underperforms

While the growth in FMCG sales was the highest in the south, the western region witnessed only 0.1 per cent growth.

“The key factor affecting sales in the west could be excessive rains during monsoon, leading to large-scale crop damage and consumers remaining cautions on spends,” added D’Souza.