FMCG prices more than doubled in a decade

Prices of packaged household staples, care products as well as packaged foods and beverages have more than doubled since 2012. College fees saw the maximum price increase followed by kitchen staples, household care products and food and beverages, the Boston Consulting Group (BCG) along with industry body CII said in a report.

- Suneera Tandon

The report said that the price increase has led to pressure on volumes of fast-moving consumer goods, or FMCG, as the quantum of price hikes remains firm. 

FMCG volumes reported a compound annual growth rate (CAGR) of 3.4% between 2007 and 2023 and 1.5% in the 12 months ended July 2023, as factors such as the covid-19 pandemic, high inflation and lower emphasis on innovation as well as category development weighed heavily on volume growth.

BCG tracked change in prices of multiple household goods and services over a ten-year period to cover college fees, FMCG including kitchen staples such as rice, pulses, flour, apart from household care products, electricity, fresh produce, fuel, clothing, inter-city travel, large appliances, four wheelers, local transportation, mobile and internet.