Urban demand growth rate fall hurts FMCG business amid rising food inflation — expert advice
3 weeks, 1 day ago

Urban demand growth rate fall hurts FMCG business amid rising food inflation — expert advice

Live Mint  

The FMCG sector has been one of the poorest performers over the past 18 months. Urban demand, which accounts for about 2/3rd of FMCG business, volume growth more than halved in 2024 due to an increase in food inflation, moderation in disposable income, and reduction in central & state expenditure. Also new large entrants like Reliance Consumer are eating market share by providing low product entry price and more than industry commission to wholesalers and retailers, which can continue in the slow to medium-term. The post 2024 monsoon climate is expected to be lucrative for Rabi cultivation led by neutral to positive La-Nina, the opposite of EL-Nino experienced in 2024, and better reservoir levels compared to last year. A reduction in food inflation will benefit an increase in urban disposable income and a reduction in input costs of FMCG players, thus increasing margins.

Food Urban Food Inflation 2024 Demand Growth Industry Fmcg Urban Demand  food  demand  rate  expert  inflation  urban  fmcg  reduction  hurts  growth  industry  market  fall  2024  rising

History of this topic

ITC, Marico to Britannia: Why are FMCG stocks under pressure today? Explained
Trending News
2 weeks ago

ITC, Marico to Britannia: Why are FMCG stocks under pressure today? Explained

Live Mint  

Stock Market Today: FMCG stocks came under significant selling pressure on Monday, December 9 as a weak mid-quarter business update from Godrej Consumer Products raised concerns across the sector about demand revival. Indian FMCG companies are currently grappling with twin challenges: rising commodity prices and weak demand from urban consumers, which severely impacted margins in the second quarter. Godrej Consumer …

High inflation likely to keep consumer demand muted in 2025: Kantar report
2 weeks, 4 days ago

High inflation likely to keep consumer demand muted in 2025: Kantar report

Live Mint  

New Delhi: Demand for goods is likely to remain subdued next year, as high inflation hurts real incomes, eroding consumer confidence, market research firm Kantar said in its outlook for 2025 released on Thursday. The report said that consumers would rather spend on experiences such as travel and musical concerts, than on buying goods, in a sign of growing challenge …

India Expects Relief in Food Inflation with Strong Kharif Harvest
4 weeks ago

India Expects Relief in Food Inflation with Strong Kharif Harvest

Deccan Chronicle  

As per the report, India’s retail inflation jumped to 6.21 percent in October, a 14-month high, driven by elevated food inflation in a few vegetables. A bumper kharif harvest is expected to lower food inflation in the coming months," it said, adding that a favourable monsoon, adequate reservoir levels and higher minimum support prices are likely to boost rabi sowing …

Food Inflation To Calm Down In Next Few Months, Says Finance Ministry’s Report
4 weeks ago

Food Inflation To Calm Down In Next Few Months, Says Finance Ministry’s Report

ABP News  

The finance ministry in its latest economic review for October revealed that food inflation is expected to slowdown in the upcoming months. “Supply disruptions from heavy rains in major producing states contributed to price pressures in tomatoes, onions, and potatoes, while elevated global prices drove up oil and fat inflation,” the ministry in the review stated. The report, released by …

Q2 results: How urban slump, input costs threw FMCG off gear
1 month, 2 weeks ago

Q2 results: How urban slump, input costs threw FMCG off gear

Live Mint  

The fast-moving consumer goods sector is caught in a double whammy of rising input costs and an urban demand slowdown. Nestlé India's chairperson and managing director, Suresh Narayanan, noted that urban sales volumes were significantly hit by a "shrinking" middle class, traditionally considered the sector's core consumer segment. "The secular trend of premiumization remains intact as premium products are doing …

​Last mile woes: On inflation data and the challenges
3 months, 1 week ago

​Last mile woes: On inflation data and the challenges

The Hindu  

The latest retail inflation data from the National Statistical Office yet again highlights the challenge in achieving durable price stability. Provisional estimates for year-on-year price gains in August show the headline rate based on the Consumer Price Index quickened marginally to 3.65%, from July’s 3.60%, as a sharp rebound in vegetable inflation led to a wider acceleration in overall food …

Retail Inflation Declines to 59-month Low of 3.54 Per Cent in July
4 months, 1 week ago

Retail Inflation Declines to 59-month Low of 3.54 Per Cent in July

Deccan Chronicle  

New Delhi: With the significant easing of food prices, consumer retail inflation declined to a 59-month low of 3.54 per cent in July, showing below the central bank’s targeted 4 per cent for the first time in nearly 5 years, while India’s industrial output slowed to a five-month low of 4.2 per cent in June 2024, mainly due to poor …

Fast Moving Consumer Goods: Time for a strategic pivot
4 months, 3 weeks ago

Fast Moving Consumer Goods: Time for a strategic pivot

Live Mint  

The strategic measures initiated by the government to boost agricultural incomes coupled with forecasts of a normal monsoon offer potential for a rural growth revival and turnaround in India’s fast-moving consumer goods sector. This is explained by inflation since 2012, which has eroded consumer affordability, curtailed consumption and driven consumers towards more economical options like low-unit packs, thereby intensifying the …

Rural demand slows down for FMCG
1 year, 1 month ago

Rural demand slows down for FMCG

Live Mint  

Consumer goods companies pointed to sluggish recovery in rural demand in the September quarter and said demand will improve “gradually” even as urban markets charged ahead helping companies lift quarterly volumes. While urban sentiment improved sequentially, instances of higher food inflation and uneven rainfall distribution led to a slower-than-expected pace of recovery in rural demand, the company said. In an …

Rising food prices may undo recent respite from inflation
1 year, 4 months ago

Rising food prices may undo recent respite from inflation

The Hindu  

India’s retail inflation may have spiked close to or over the 6% upper tolerance threshold of the Reserve Bank of India in July, owing to a broad-based uptick in food prices, and could remain sticky in coming months, economists reckon. Core inflation may ease State Bank of India group chief economic adviser Soumya Kanti Ghosh is not as sanguine and …

Fall in Kharif output may keep rice prices at elevated levels
2 years, 3 months ago

Fall in Kharif output may keep rice prices at elevated levels

The Hindu  

A 6-7 million tonnes shortfall in rice production due to a fall in paddy sowing area is likely to keep rice prices at elevated levels, adding to the inflationary pressure that the slowing economy is already grappling with. India's rice production during the 2021-22 crop year, ended June, stood at record 130.29 million tonnes as against 124.37 MT in the …

Lower Kharif sowing calls for deft management of foodgrain stock, prices: Finance Ministry report
2 years, 3 months ago

Lower Kharif sowing calls for deft management of foodgrain stock, prices: Finance Ministry report

The Hindu  

A Finance Ministry report on September 17 underlined the need for deft management of stocks of agriculture commodities in view of lower crop-sowing for the Kharif Season, stressing there should be no room for complacency on the inflation front. Overall, inflationary pressures in India appear to be on a decline with a pre-emptive set of administrative measures by the government, …

Why rising inflation, Covid could be a spoilsport in growth recovery
3 years, 8 months ago

Why rising inflation, Covid could be a spoilsport in growth recovery

India Today  

There are some clear worry lines on the inflation front which has prompted the Reserve Bank of India to once again leave interest rates unchanged. Between June and November 2020, inflation crossed 6 per cent, the upper tolerance limit fixed by the RBI. The move paid off and consumer price inflation or retail inflation fell in December 2020 and eased …

Kharif Paddy Procurement in Punjab Sees Record Jump to 15.99 Lakh Tonnes in Last 13 Days: Union Food Ministry
4 years, 2 months ago

Kharif Paddy Procurement in Punjab Sees Record Jump to 15.99 Lakh Tonnes in Last 13 Days: Union Food Ministry

News 18  

Paddy procurement at minimum support price in Punjab, the food bowl of India, rose nine times to 15.99 lakh tonnes in the first 13 days of the ongoing kharif marketing season from 1.76 lakh tonne in the year-ago period, according to the Union Food Ministry. “In the ongoing kharif season, Punjab registered an unprecedented increase of procurement from 1.76 lakh …

High Kharif Output Coupled with MSP Hikes Can Leave Farmers with More Liquidity of Rs 50K Cr: Report
4 years, 2 months ago

High Kharif Output Coupled with MSP Hikes Can Leave Farmers with More Liquidity of Rs 50K Cr: Report

News 18  

Mumbai: With yet another record food production at 301 million tonnes expected on the back of a bumper kharif crop this year, recent MSP hikes can leave the farmers with an additional liquidity of Rs 50,000 crore, according to a report. Kharif crops account for nearly 9 per cent of the total gross value added and contribute nearly 60 per …

Well-spread Monsoon to Result in Bumper Kharif Output: Report
4 years, 3 months ago

Well-spread Monsoon to Result in Bumper Kharif Output: Report

News 18  

The overall kharif crop output is expected to increase 5-6 per cent this year mainly driven by higher crop acreage and productivity following a well-spread monsoon across the country, according to a report. Crisil Research expects an overall 5-6 per cent growth in farm output, including a 2-3 per cent rise in the sowing area at 109 million hectares for …

FMCG firms to stay in the slow lane this year
4 years, 4 months ago

FMCG firms to stay in the slow lane this year

Live Mint  

Market researcher Nielsen now projects India’s packaged consumer goods sales to shrink or remain little changed from last year, slashing its rather optimistic 5-6% growth estimate made on 30 April on hopes that the sector would better withstand the fallout from the coronavirus pandemic. “Despite increased household consumption, even in the dairy sector, overall growth would remain flat for the …

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