Due to the Covid-19 pandemic situation, the consumers stocked up on products in their households. Due to pre-buying/ stocking of products the household consumption of groceries and home and personal care products surged to a two-year high during the April-June quarter, according to a research firm.
The fast-moving consumer goods market expanded 4.3% in volume and more than 8.5% by value during the quarter, according to the data from Kantar Worldpanel. K Ramakrishnan, the South Asia managing director said, “From a household purchase lens, FMCG overall seems fairly strong. While out of home consumption may have seen a sharp drop, the household view is one of positive growth,” at the company owned by communications and advertising giant.
“With people staying at home, both household consumption by volumes as well as frequency was higher across food and non-food products, which reflected in published results. Companies which have lower dependence on out-of-home categories posted good results,” FMCG company Marico managing director, Saugata Gupta, said.
Few companies disclosed their results and said that their sales increased in this pandemic situation. For instance, Britannia expanded sales by 25%, while Hindustan Uniliver said there was a big burst for jams and ketchup as people were cocooned in homes. ITC, which makes Sunfeast biscuits and Bingo chips, said staples, noodles, biscuits and dairy products saw healthy demand in June quarter. Marico too said demand for its Saffola cooking oil grew 16% due to an increase in home cooking. It also reported higher-in-home consumption of hair oils.
Sunil D’Souza, Tata Consumer products managing director told the investors last week that, “Despite the fact that across the globe and across different states and cities in India, on-premise and out-of-home consumption is getting eased out, we still see a challenge which consumers are still very, very hesitant to step out.”
NEWS REPORTED BY:
VRIDHI BHAGNARI.
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