FMCG - #SectorUpdates
Consumers are once again moving towards high-value packs in fast-moving consumer goods (FMCG) category. According data analysed by Bizom, a platform that automates retail execution at 7.5 million kirana stores, reveals a shift in consumption towards high-value packs. The YoY growth in July for the high-value packs in FMCG was 8.5%. The strong demand witnessed in the large pack FMCG category is primarily driven by e-commerce and quick commerce, which are becoming a regular part of urban lives. With economic activity returning to normalcy and opening of schools, colleges and offices lower priced packs for out-of-home consumption is also witnessing an increased demand. A good monsoon will ensure good agricultural income which is likely to improve rural consumption. The upcoming festival season is expected to see a surge in contribution of high-value packs for discretionary purchase along with beverages as gifting and bundling of products take priority.