Consumer goods companies feel margin squeeze on raw material cost

If last year it was the pandemic that had disrupted business plans, in 2021, a steep rise in raw material prices is turning consumer goods makers jittery. With a range of commodities and other raw material turning costlier, manufacturers across categories are now left with no option but to hike prices, despite the risk of losing consumers.

After the initial spurt in demand after lockdown, manufacturers were hoping for a smooth run in the next few quarters. While the festival sales have been encouraging for most categories, a steady increase input costs since November has emerged as a key concern for