Nielsen lowers growth outlook for Indian FMCG

Marketing research firm Nielsen has slashed the growth outlook for the Indian FMCG industry this year, given the disruptions caused by the lockdown to stop the spread of the Covid-19 pandemic. It expects a flat growth ranging from -1% to 1% for the branded FMCG industry in India, as against the 5 to 6% growth it projected earlier this year. “Severe and extended lockdowns, restrictions on manufacturing units and movement of people and goods, social distancing norms, and store closures, etc., have had a significant impact on the Indian FMCG industry. So much so that the industry growth went to a negative zone in the first half of 2020 (6% decline in the January to June period),” Nielsen said. Lockdown hits hard  The FMCG slowdown, which started in March, was amplified in April-May when the industry declined by 28% compared to the same period of 2019. Nielsen said this was due to massive disruptions in production and the supply chain and low consumer confidence. Unlock 1.0 in June, did see a revival with the industry…

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