FMCG sales decline by 8% in July

5 Aug 2022 , 07:39 AM

The value of the fast-moving consumer goods (FMCG) market in India declined by 8%, but sales of electronic items like air conditioners and refrigerators remained unchanged from June to July, showing that rising prices are still having an impact on demand.

According to the most recent study by Bizom and industry estimates, the sales of consumer electronics have nearly stopped declining, but FMCG has had three straight declines.

However, compared to a year before, grocery sales increased by 5%. Companies reported that they are beginning to notice signs of demand recovery and anticipate a steady improvement in the current quarter, particularly for staples.

Despite a 25% increase in the electronics market over pre-pandemic levels, the increase was driven by price increases of an average of 20%. Also, there is still a low demand for products at the entry-level.

According to company executives, volumes would have decreased by 9—10% in July when compared to the same month last year. However, the market had a significant resurgence in July of last year as a result of pent-up demand immediately after the second wave of limitations was lifted.