FMCG Firms Opt To Cut Weight Rather Than Hike Prices As Inflation Soars

FMCG manufacturers are opting to reduce product weight rather than price to overcome the impact of commodity price rise and unprecedented inflation.

FMCG manufacturers are opting to reduce product weight rather than price of items targeted at lower-end consumers, while resorting to single-digit price increase on some large packs and launching 'bridge packs', as they seek to overcome the impact of commodity price rise and unprecedented inflation. 

Besides, they are also using economical packaging, recycled products, and cutting spending on advertising and marketing to counter sudden spur in costs due to geopolitical crises such as the Russia-Ukraine War as well as the export ban of Palm oil from Indonesia.

The growing commodity prices and unprecedented inflation touching a new high, has forced the consumers to tighten their purse strings and opt for the low-unit price (LUP) packs to maintain their household budgets.

Homegrown FMCG maker Dabur India has responded to this challenge with a mix of pricing actions and cost control measures, said its CEO Mohit Malhotra.