India’s fast-moving consumer goods (FMCG) sector will grow 12-13% in calendar year 2018, says a report by market research firm Nielsen India.

The sector, according to Nielsen India, has weathered the storm of goods and services tax (GST) and demonetisation, and the trade dynamism caused by it has also settled down.

“Looking at the overall macro-economic scenario and the industry dynamics, the FMCG sector’s growth in calendar year 2018 to be around 12-13%, which is closer to the growth range witnessed in 2017,”said,” Sameer Shukla, executive director, Nielsen India.

The economic momentum is expected to gather pace through the second half of 2018, benefiting from a favourable economic and policy environment,” he added.

For the quarter ended June, the sector witnessed a growth of 10.9%. The growth was on the back of a low base, consumption tailwind coming from GST rate cuts, strengthening macro-economics, and robust monsoon projections, said the report.

Also, the wholesale channel during the quarter improved which was disrupted due to GST, helping rural demand to pick up. The growth differential between rural and urban areas has gone back to three percentage points.

A growing appetite for natural and healthy ingredients has helped the natural segment to show a healthy growth of 20%, almost 3 times that of the non-natural segment.

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