FMCG companies predict a 5–15% increase in summer sales; which products will do well and who will purchase them?

FMCG firms anticipate a 5–15% increase in demand for a variety of items, including those in the snacking, beverage, ready-to-eat package, rice product, and soap categories, due to the early start of summer this year. “For the next three months, we anticipate at least a 15% increase in demand. The need for snack items typically increases when the weather warms, as do holiday and trip plans. Reopening of educational institutions causes a further increase in FMCG consumption, particularly for impulsive items like candy, cakes, and salty snacks, according to Krishnarao Buddha, Senior Head Category, Parle Products.

The season increases soap consumption in the personal care sector. Over the summer, personal hygiene categories like body wash and face wash will expand significantly. “We anticipate higher demand in the forthcoming summer season for our soap category, which is led by brands like Godrej No. 1 and Cinthol. Demand typically increases for both brands, which together have a double-digit market share, according to Sameer Shah, Chief Financial Officer of Godrej Consumer Products Limited.

According to Amarnath Halember, travel kits and travel-related products will experience an increase in sales while kitchen cleaning and laundry products in the household category will experience a modest downward trend due to less usage during the travel season.

FMCG companies are aiming for better performance in rural markets now that demand and consumption have recovered. According to Krishnarao Buddha, rural contributions typically account for 55% of total contributions. However, due to an increase in farmers’ disposable income, Krishnarao Buddha expects rural contributions to expand faster than urban contributions. Also, FMCG companies are boosting their upfront marketing expenditures on advertising and promotion in these sectors.

Also, FMCG firms with a significant rural footprint are optimistic about reporting a recovery in rural demand as a result of the government investing more in improving road connectivity and infrastructure throughout the nation with the goal of urbanizing the hinterlands.

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