As per global research firm Kantar, over the next few quarters in India, demand for daily groceries, essentials and household products will take a hit. In the December quarter, the overall volume of the products which the consumers bought stood at 5.2 percent as opposed to 6.9 percent in the September quarter.
Kantar’s responsibilities include monitoring branded and unorganised products, which includes unpackaged voluminous commodities. Nielsen tracks branded retail sales.
In 2023, the sales volumes in the rural markets climbed to 4.8 percent, and in cities, it stood at 5.6 percent. The consumer industry of India is price sensitive, and were faced with a demand crunch after the companies raised the sticker prices (the advertised retail price) by a quarter in the past two years.
This is in order to offset the impact of input costs, which saw a rise in the aftermath of Covid-19, where mobility and business curbs led to disruptions in the global supply chain.
Even the Russia-Ukraine conflict spiked the prices of the commodity.
Consumers, whose preferences have been inclined towards cheaper products, has resulted in the companies slashing prices in the past three quarters. But, this has not boosted volumes.
In 2023, in the April to September quarter, the FMCG market of the country touched 6.1 percent.
Read More: TCS most valued Indian brand with a $43 billion brand value: Kantar