Now Reading: FMCG Volume Growth Slows To 4% On War, Weak Monsoon
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FMCG Volume Growth Slows To 4% On War, Weak Monsoon
FMCG volume growth in India is expected to slow to 4%, weighed by the war in Ukraine and a weak monsoon, according to market research firm Worldpanel data cited by NDTV Profit.…
The Story in Brief
FMCG volume growth in India is expected to slow to 4%, weighed by the war in Ukraine and a weak monsoon, according to market research firm Worldpanel data cited by NDTV Profit. The sector raised prices by 2-5% in the June quarter and is now resorting to a mix of selective price increases and shrinkflation, reducing pack sizes without cutting prices proportionately.
The slowdown marks a sharp deceleration from the double-digit growth seen earlier this year. Consumer demand remains under pressure as rural markets, hit by erratic rainfall, show particular weakness. Urban consumers face higher prices for staples and packaged goods, eroding purchasing power.
The Indian Opinion
The usual narrative blames the Russia-Ukraine war and poor monsoon for sluggish FMCG demand, but that lets companies off the hook. They chose shrinkflation over transparent price hikes, quietly reducing grammage while keeping MRP the same. Indian shoppers notice when a 500 gm packet becomes 450 gm. The real test: will competition force a reversal once raw material costs ease, or is this the new normal for packaged goods? Consumers deserve an honest explanation, not just smaller packs.
Source: ndtvprofit.com
This story was synthesised by AI from the source linked above.
