FMCG companies are reducing the packet weight of their products to meet the challenge of rising commodity prices and inflation.
Consumer goods manufacturers of everyday use (FMCG) are reducing the packet weight of their products to meet the challenge of rising commodity prices and inflation. Apart from this, companies have also launched bridge packs.
companies manufacturing consumer goods for everyday use (FMCG) Commodity price hike and inflation (Inflation) your products to meet the challenge of (Products) Reducing the weight of packets. Apart from this, companies have also launched bridge packs. A bridge pack is a range between the maximum and lowest value in a product range. These companies because of weight loss (Companies) They have not had to increase the prices of packaged products. Companies are taking such a step mainly targeting the users of low income group. Apart from this, these companies have increased the price of large packets of a product. However, this increase is also less than 10 percent.
The ban on palm oil exports from Indonesia and the geopolitical crisis caused by the Russia-Ukraine war has led to a steep rise in construction costs. To counter this, FMCG manufacturers are using cheaper packaging, recycled products and cutting down on advertising and marketing expenditure.
People cut spending due to inflation
Due to the rising prices of commodities and skyrocketing inflation, consumers are looking to spend less and buy Low Unit Price (LUP) packs so that the budget does not get disturbed.
Mohit Malhotra, CEO, Dabur India said that since the per capita income and spending capacity of consumers in urban markets are high, they have increased the prices of larger packs. The weight of the product has been reduced for LUP packs sold in rural markets. There is no sign of inflation coming down in the coming quarters. In such a situation, instead of increasing the price, many companies have cut the weight of the products.
Mayank Shah, Senior Category Head, Parle Products, said that the consumer trend has shifted towards value packs and the sales of LUP packs have increased somewhat. At the same time, Abneesh Roy, Executive Vice President, Edelweiss Financial Services said that consumers are buying smaller packs to save money and this is happening across all FMCG categories.
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