Companies have been forced to cut product grammage to save on costs, it added. The reduction in grammage was seen malted food drinks, salty snacks, soft drinks and hair oils
Mint reported that while the average per-kg price of fast-moving consumer goods (FMCG) jumped 10.1%, the pack size shrank by nearly 15%, according to the June FMCG Pulse update. Companies have been forced to cut product grammage to save on costs, it added. The reduction in grammage was seen malted food drinks, salty snacks, soft drinks and hair oils.
However, the number of FMCG packs bought rose 15% in the same period. That simply meant that people were buying smaller packs. “To summarize, FMCG is starting to feel the pinch of high inflation,” it said in a note.
“There are certain high-frequency categories that for the time being are insulated, and are likely to continue performing well. As inflation deepens more and more, people will make use of free benefits that the government is offering and are likely to deploy the money saved thus to some other purchase,” it added.
“FMCG volumes declined 1.1% year-on-year in the three months ended April 30, 2022, while the sector reported value growth of 9% in the same period. April saw volumes decline 1.4%, the tenth straight month of decline in the last one year”
Official data released at the beginning of this week showed, Mint reported, India’s wholesale price-based inflation touching a record 15.88% in May compared to 15.08% in April. Price rise of mineral oils, crude petroleum and natural gas, food, basic metals, non-food articles, chemicals and chemical products, food products and others, were behind this high rate of inflation, according to the Ministry of Commerce and Industry.
FMCG volumes declined 1.1% year-on-year in the three months ended April 30, 2022, while the sector reported value growth of 9% in the same period. April saw volumes decline 1.4%, the tenth straight month of decline in the last one year.
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