The average FMCG product price rose 11 per cent during the summer months, with frozen food and cold beverages witnessing the steepest increases at 16 per cent and 15 per cent respectively
With artificial intelligence (AI) emerging as a critical enabler of pricing, inventory, and product strategy, India’s fast-moving consumer goods (FMCG) and consumer packaged goods (CPG) sectors are undergoing a transformative shift in response to surging summer demand.
According to a recent report by Sciative Solutions, AI-powered dynamic pricing is helping brands and quick commerce platforms keep pace with evolving consumer behaviour, fluctuating demand, and hyperlocal competition.
Pricing has also seen a seasonal shift. The average FMCG product price rose 11 per cent during the summer months, with frozen food and cold beverages witnessing the steepest increases at 16 per cent and 15 per cent respectively. These price hikes are not solely demand-driven. Higher operational costs, particularly cold chain maintenance, are also being passed on to consumers.
The study, based on data from a leading quick commerce platform, highlights an approximate 50 per cent increase in product assortment during the summer period, especially in categories like cold drinks and packaged foods. These categories saw product numbers rise by nearly 80 per cent, driven by consumer preference for light, convenient and ready-to-consume items during hot weather and holiday-related social activities.
Compounding this expansion, nearly 30 per cent of brands entered the quick commerce space between the pre-summer and peak summer period. This demonstrates not just high seasonal receptivity, but also the platform’s role as a rapid launchpad for newer brands. The study notes that Gen Z’s experimental approach to beverages, such as flavoured waters and functional drinks, has further propelled this trend.
Interestingly, price surges were often directly linked to out-of-stock (OOS) occurrences. The study observes a clear pattern where categories experiencing frequent stockouts, such as cold drinks, also show the highest price increases. AI helps platforms respond swiftly by adjusting prices based on availability, while ensuring they remain aligned with consumer willingness to pay.
