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FMCG companies face a problem as consumers flock to low-price packs

Volume growth gets hit as more consumers buy these packs, as do margins. But companies have little choice if they want to retain consumers

August 11, 2022 / 12:30 PM IST
FMCG companies face a problem as consumers flock to low-price packs

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NielsenIQ’s June 2022 quarter update paints an overall picture that investors are familiar with. But it’s a rare peek into data on pack sizes they should be paying closer attention to, where a marked shift is taking place. Consumers have been shifting down the price ladder as inflation reins in consumption, and this is resulting in a fall in volume growth. But the June quarter was an unusual one, where the shift to lower sizes accelerated, but volume growth rose...

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