Covid-19 effect: FMCG consumers turning to low-value packs
As a direct result of economic slump resulting from Covid-19 lockdown, coupled with salary cuts and job losses, it appears that Indian customers are moving towards purchasing ‘low-value packs’. According to a report published by Mint, FMCG firms are anticipating that consumers, after hoarding large packs of staples and home care products during the first phase of lockdown, will now downtrade.
23 May 2020 | By WhatPackaging? Team
According to Adani Wilmar, the maker of edible oils and packaged goods, said more people are buying smaller packs as demand for bulk packs has declined sharply. The company that sells packaged flour, among other food, said consumer packs or those up to five-kg are witnessing more demand.
Mint quoted Grofers co-founder and CEO Albinder Dhindsa, saying that there are early signs that the consumption slowdown is going to be extreme and people are buying smaller packs and private labels that are cheaper.
Meanwhile, in a video call with reporters, Suresh Narayanan, chairman and managing director, Nestlé India, said there will be opportunity for popularly priced products as a result of some downtrading in semi-urban and rural markets.
According to Marico, while its Saffola cooking oil registered strong growth during the quarter as consumers cooked more at home during the lockdown, its discretionary portfolio of personal care products — male grooming, serums and hair care — was affected as consumers prioritised items of daily use in the days leading to the lockdown.
A sharp dip in employment rates and salary cuts are likely to make shoppers re-prioritise their monthly household expenses. Consequently, categories such as cosmetics, makeup and perfumes could see a net decrease in spending. Under the circumstances, innovative, affordable and good quality products that are available in multiple formats are likely to gain demand as consumers increase their consumption of hygiene products.
See All