- Companies may hike prices or reduce product pack sizes.
FMCG Products Price Hike: Soaps, detergents, biscuits, packaged food items and drinks are expected to get more expensive. The reason? A likely rise in petrol and diesel prices is set to hit the FMCG (Fast Moving Consumer Goods) sector. Rising logistics and raw material costs have prompted companies to prepare for increasing prices on their products. Consumers are expected to feel the pinch at checkout.
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The Challenge Before FMCG Companies
Inflationary pressures from volatile crude oil prices, rising logistics costs, weakening rupee, and disruptions in global supply chains caused by geopolitical tensions are together squeezing company profits. This pressure is being felt across food, personal care, beverages, and household products alike.
To protect profit margins, FMCG companies are either raising prices or reducing pack sizes to help them maintain sales volumes while preserving the affordable Rs 5, Rs 10 and Rs 15 small-pack format that consumers prefer.
Items Likely To Get More Expensive
Soaps and detergents: The international prices of palm oil and linear alkyl benzene, key raw materials used in these products, are rising.
Dishwash and handwash: Higher packaging and transportation costs could push prices up by 5–10 per cent.
Biscuits and namkeen: Rising prices of flour, sugar, and palm oil will directly impact manufacturers of biscuits and snacks. Companies may either raise prices or reduce the weight of packets.
Packaged food: Prices of frozen food and instant noodles may also go up.
Soft drinks and juices: Increased summer demand, combined with costlier PET (plastic bottle) manufacturing, could drive up prices in this category.
Tea and coffee: Rising logistics costs may make packaged tea and coffee more expensive as well.
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