The fast-moving consumer goods (FMCG) sector has been grappling with increased costs due to factors like inflation, supply chain disruptions, and higher commodity prices
In response to escalating input costs, including raw materials and logistics, Parle Products, a leading fast moving consumer goods (FMCG) company, is set to implement price hikes across its product portfolio from January 2025. This increase will be applied to a wide range of items, including bread, biscuits, snacks, cake products and rusk.
As per the media reports, the company is also planning to reduce weight of some products in addition to price adjustments. The reduction in grammage is for its entry-level and low-unit price packs. Depending on the pack size, products like the Parle-G Rs five and Rs 10 packs will see their weight get reduced by 5 per cent to 10 per cent. This strategy aims to balance the need to offset higher expenses without significantly burdening customers.
The company intends to increase prices by over 5 per cent on its range of biscuits, snacks, and rusk products. This move follows similar actions by competitors, such as Britannia, which have also raised prices to mitigate the impact of rising production expenses.
The FMCG sector has been grappling with increased costs due to factors like inflation, supply chain disruptions, and higher commodity prices. Companies are adopting various measures, including price hikes and product resizing, to sustain profitability and continue delivering value to consumers.
While the price increases are necessary for manufacturers to cope with rising costs, companies like Parle are striving to implement these changes in a manner that minimises the impact on end-users. As the industry continues to navigate these challenges, stakeholders will monitor how such pricing strategies affect consumer behaviour and market dynamics in the coming months.
