Now Reading: FMCG growth outlook splits as costs rise and demand recovers
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FMCG growth outlook splits as costs rise and demand recovers
FMCG volume growth may slow to 4% as the West Asia war and a weak monsoon weigh on demand, Worldpanel said, according to NDTV Profit. Companies raised prices by about 2% to…
The Story in Brief
FMCG volume growth may slow to 4% as the West Asia war and a weak monsoon weigh on demand, Worldpanel said, according to NDTV Profit. Companies raised prices by about 2% to 5% in the June quarter and also cut pack quantities to manage costs.
The Times of India reports firmer consumption, with Nestlé and Marico posting double-digit volume growth. Rural demand grew 6.2% in the first quarter, ahead of urban demand at 4.6%, according to Dabur India. Raw material costs rose 8% to 10%, led by packaging, edible oils and palm oil. Companies used selective price hikes and grammage cuts to protect margins.
The Indian Opinion
The easy story is either that FMCG demand has collapsed because of war, or that a recovery is already secure. Neither fits the evidence. Rural demand remains ahead, but Worldpanel’s 4% outlook and higher input costs point to pressure ahead. Consumers may also be paying more for less in each pack. The clearest test will be whether festive-season urban volumes rise without another broad price increase.
Sources (2): ndtvprofit.com, timesofindia.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
