FMCG growth pace set to pick up, says NielsenIQ report
By Retail4Growth Bureau | Mumbai | March 26, 2021
While 2020 was a tough year for the FMCG sector across Asia, with all main markets, including India, witnessing decline in growth figures, the pace will pick up and normalise this year as consumer and business confidence rebounds, says a new NielsenIQ report.
A new report by NielsenIQ says that growth in the fast moving consumer goods sector is set to reignite in Asia after a year of pandemic-led slump.
“2020 was a challenging year, with most Asian markets experiencing a decline or lower growth in FMCG. We believe the pace will pick up and normalize this year, though as consumer and business confidence rebounds,” Justin Sargent, President of Retail Intelligence, NielsenIQ Asia, has been quoted as saying.
“India experienced an unprecedented 40 per cent decline in April’ 2020 due to mass store closures, which bounced back to 2019 levels of 8 per cent towards the year-end recording a balanced -1.9 per cent growth, “ the NielsenIQ report noted.
Stating that innovation and affordability remain key factors for Asian consumers, the report stated that more Asian consumers are choosing where to shop based on value for money (95 per cent), low prices (75 per cent), safety and hygiene, wide product selection, fresh products and convenience in location.
Though traditional channels are still dominant, online hyper/supermarket ranked no.1 for Asian consumers when asked where they planned to shop more, the report added.
“There is plenty of room for opportunity and growth. We have witnessed remarkable winning stories from some brands, who have paired innovative ideas with the right in-market activation. Dynamics are still uncertain but those who are more agile will be the big winners in 2021,” Sargent added.
The report also added that 62% of sales in fast-moving consumer goods segment came from local brands. In addition, 80% of sales came from smaller players in the sector.