- 15 Jun 2022
- ICICIdirect Research
FMCG goods expand in double digits in February-April
News: According to Kantar Research, nearly two-thirds of the fast-moving consumer goods (FMCG) segment, including biscuits, snacks, shampoo and bottled soft drinks, expanded by double-digit percentage in volumes in February-April. The overall market fell 1% year on year after voluminous categories, particularly edible oil, atta, hair oil and detergent, either fell or grew at a slower rate, underlining that the consumer market slowdown is not widespread. Consumers paid 10.1% more per kilo for FMCG products during the period compared to a year ago while the pack size was reduced by 15% on average.
Views: We believe strong volume growth in key categories is partially due to low base of last year (impacted by second Covid wave). However, decline or slower growth in edible oil, detergent & hair oil has been mainly due to steep inflation in raw material prices in these categories. It is important to note that palm oil & crude prices nearly doubled in the last one year.