Price hikes slow down FMCG sales growth in March quarter, shows data

Fast-moving consumer goods (FMCG) sales slowed in the March quarter on the back of a sharp rise in prices, especially in commodity products that include edible oil, retail Intelligence platform Bizom said.

Consumers in both rural and urban areas have started to downtrade in products. We are, however, seeing an immediate slowdown in sales at urban areas as rural consumers buy smaller packs more frequently, Bizom said.

Homecare and personal care product sales have witnessed a slowdown. However, Bizom expects sales of beverages to pick up in the summer months.

“Commodity sales are higher mainly on the back of a sharp rise in prices and this is having a domino effect on prices of many other FMCG products, thus affecting growth as discerning consumers focus more on essentials. It will be necessary to rein in prices soon, else we could start to see a strain on consumption for many FMCG products in the months to come," Akshay D'Souza, chief growth and insights at Bizom, told Business Standard.