{"id":10089,"date":"2022-06-25T17:51:34","date_gmt":"2022-06-25T12:21:34","guid":{"rendered":"https:\/\/blogs.univest.in\/?p=10089"},"modified":"2022-10-13T14:37:52","modified_gmt":"2022-10-13T09:07:52","slug":"consumption-slowdown-in-the-last-three-quarters-affecting-fmcg-sector","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/consumption-slowdown-in-the-last-three-quarters-affecting-fmcg-sector\/","title":{"rendered":"Consumption slowdown in the last three quarters affecting FMCG sector"},"content":{"rendered":"\t\t
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According to many research estimates, the fast-moving consumer goods (FMCG) market in India increased by 6% in the January-March quarter compared to the prior year, driven primarily by double-digit price growth.<\/p>\n

Due to rising commodity costs and supply-demand mismatches brought on by the pandemic, inflation began to skyrocket in many economies even before the continuing conflict between Russia and Ukraine. Because of this, central banks such the U.S. Federal Reserve, the European Central Bank, and the Bank of England decided to accelerate the timetable of tightening monetary conditions in their respective nations.<\/p>\n

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The situation was made worse by the ongoing conflict between Russia and Ukraine, which led to a substantial rise in price volatility for commodities relating to agriculture, energy, and petroleum.<\/p>\n

The IMF projects that global inflation\u00a0reached\u00a0its highest level in 26 years in 2022, at 7.4%. Which is to blame for the volume’s recent drop. Although the total volume degrowth was dispersed across all categories, the extent in non-food was noticeably greater than in food. Volumes in the non-food category decreased by 9.6%, and those in the foods category fell by 1.8% during the quarter. Due to the high input cost pressures and inability to pass the prices on to consumers, there was also a 5.3% increase in small manufacturers leaving the industry in the March quarter.<\/p>\n

For instance, the FMCG company HUL recently claimed that rising pricing and shrinking packs will be necessary in the future due to the significant influence that inflation has on soap sales.<\/p>\n

Let us analyse the performance of FMCG sector by analysing Q4 & FY22 performance of four major industry players i.e., HUL, ITC, Britannia & Dabur.<\/p>\n

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