FMCG sales fell by almost 10% in January due to third-wave restrictions: Bizom

Packaged consumer-product volumes dropped 1.8% in the December quarter, the second consecutive downfall, as companies inflated price tags to counteract growing input expenditure.

Fast-moving consumer goods (FMCG), also known as consumer packaged goods (CPG), plunged 9.9% in just the first 15 days of January compared to December corresponding to the constraints in the third Covid wave and a drop in transportation due to the spread of the virus affected market.

Packaged consumer-product volumes dropped 1.8% in the December quarter, the second consecutive downfall, as companies inflated price tags to counteract growing input expenditure. There has been a 6-12% incremental sales growth this month.

Despite this drop, there were a few positives that are perceptible in January, particularly for staples, as consumers have been stocking goods, amid the third wave, with retailers raising stock levels.

These varieties are connected to out-of-home consumption wherein shoppers buy such products while on the go. State and city-wise restrictions on mobility and operating hours for stores impacted out-of-home consumption. Confectionery sales too dropped by 12%. Injunction for packaged foods and beverages tumbled 22.8% and 12.5%, respectively.

“As out-of-home consumption reduces, we see packaged foods and beverages products show a drop in sales. We’re now also seeing a drop in mobility with travel services being impacted. This has affected sales for ready-to-eat products within packaged foods that were the fastest-growing category in December’21,” Bizom said in its data.

Regardless, as cases dip in several large cities, Bizom data indicate that beverages as a category will commence glimpsing “aggressive” standing (on shop shelves by companies) next month in expectation of a strong summer season. FMCG or Fast-moving consumer goods companies of India are sold packaged foods, toiletries, consumables and personal care brands. Fast-moving consumer goods or consumer packaged goods is the 4th largest sector of the Indian economy.

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