The overall growth rate of the FMCG sector in 2020 will be negative

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Mumbai, Ta. 27 November 2020, Friday

The country's Rs 2.50 trillion fast moving consumer goods (FMCG) sector is expected to decline by 1 to 4 per cent this year. Research firm Nelson's comments come in the face of challenges such as high commodity prices.

The FMCG sector showed positive growth in the July-September quarter. In addition, the fourth quarter of 2020 will see growth in the sector, but the negative growth rate seen in the first six months of 2020 can not compensate for the normal growth of the last six months, a firm report said.

In the second quarter of the current year, the FMCG market saw an annual decline of 12 per cent. The lockdown, which took effect on March 8, had a serious impact on the FMCG sector.

Considering that the country's economy is booming, consumer confidence is also expected to increase in phases over the next 12 months, the RBI said. The RBI said in its October report that its Future Expectations Index improved for the second month in a row but the current situation index remained low.


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