Holi sales to mark beginning of bumper summer for FMCG firms, as consumers return to normal life: FMCG companies expect a pick up in sales amid the Holi festival this year to lead into bumper business in the upcoming summer season. They are looking at a probable surge, with 40% of their annual sales in the upcoming summers, after two consecutive years of dampened sales due to Covid related restrictions and curfews. “Around 35-40 per cent of total annual sales comes from the summer season for FMCG companies and but this year it can be more than 40 per cent as COVID restriction has been lifted in major states of India,” said Azaz Motiwala, Founder & CMD, IKON Marketing Consultants Pvt Ltd. However, the surge in sales during this summer will be more in terms of value while the volume will remain more or less flat. “Due to the low base effect owing to the lockdown last year, growth seems to be certain during the summer season. However, with schools and offices reopening, out-of-home categories of convenience and discretionary will grow faster. These categories may see an overall increase of 30-40 per cent, while the staples/grocery category will be flat in terms of volume but will witness value growth due to inflation,” said Akshay Modi, Managing Director, Modi Naturals Limited. Many FMCG firms are sceptical about the acceptance of further price increases by the end consumers even as they believe that there will be a surge in sales during the summer season. “Inflation will be a bit of a dampener to the Holi momentum extending into the summer season. The geopolitical situation is driving up the prices of most commodities, especially edible oil, wheat, packaging material, and fuel drastically. We are expecting a further spike in price across key categories in the FMCG sector. Most FMCG companies will be compelled to increase their prices after Holi so that the festive season is not affected,” said Akshay Modi.
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