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FMCG growth slows to single digit in 2019
Why is it in the news?
- According to Nielsen, after two years of clocking double-digit growth, the fast moving consumer goods (FMCG) segment slowed down to single digit growth in 2019.
- Nielsen is a global measurement and data analytics company that provides the view available of consumers and markets worldwide.
More in the news
- Data from Nielsen:
(1) FMCG grew at 9.7% in 2019, much lower than the previous year’s growth of 13.5%.
(2) The growth trend was dampened by a drop in volume growth- down to 5.8% from 10.5% in 2018, while price-led growth sustained at 3.4%.
(3) However, 2020 offers a stable outlook for the industry arresting the 2019 decline.
- Cause:
(1) A mix of macroeconomic factors, and channel and zone factors driven by manufacturers, coupled with consolidation of smaller players have been instrumental in the slowdown.
(2) A lower pace of innovation has further limited consumer demand pick up.
Source
The Hindu.