Data analytics company Nielsen India has projected the growth of FMCG industry at 12-13 percent in 2018, lower than the previous year, owing to the strong base effect.

With trade disruptions from GST and demonetisation settling down, consumption demand in India's FMCG industry seems to have bounced back.

Volume growth, which accounts for 70-75 percent of overall growth, is expected to come in at high single digits for CY18. However, Nielsen pointed out that pricing-led growth may not be as high as previous years, estimating it to be at 2-3 percent.

The contribution of modern trade channels has now touched 10 percent. Retail stocks or inventory is also higher than the pre-demonetisation level, indicating a robust consumption appetite.

Rural growth, which had been under stress for the last few quarters, seems to have outpaced urban growth.

"Consumption is a theme that will do well because we will see a lot of government spending in rural areas as this is an election year," said Raamdeo Agrawal, co-founder of Motilal Oswal Financial Services.

Among categories, growth in food segment outpaced personal care growth in the household category. Naturals continued to perform in the personal care space.

First Published:Aug 28, 2018 2:52 PM IST