FMCG Firms Hike Prices By Up To 10% Amid Demand Slowdown

Fast-moving consumer goods (FMCG) firms are increasing prices by up to 10 per cent to keep revenue high amid a sustained slowdown in demand.

The roughly 10 per cent price increases that makers of daily household goods have implemented across all categories so far in the fourth quarter, except soap and edible oil, corroborate this, NDTV Profit reported.

The price of toothpaste has seen a steep hike of up to 10 per cent. The cost of Hindustan Unilever's Pepsodent and Colgate brands is up by 2 to 10 per cent.

Dabur has also raised the price of its 200-gram Meswak toothpaste by 8 per cent.

Marico has hiked select stocks of Parachute hair oil by 11 per cent. Nestle has raised prices by 9 per cent in select stock units of Nescafe Classic and Nescafe Gold.

The prices of detergent are up by 2 to 4 per cent.

Soap, edible oil and biscuits are the only three categories reporting negative prices.

The management commentary on the demand outlook remains muted. Companies are banking on recovery from the strong summer season, followed by better monsoon

The topline growth of FMCG companies was weaker than expected in the preceding quarter ended in December. This was because the pricing growth in the market continued to tail off and expectations of demand recovery from Q3 FY24 didn't materialise.