High prices dent spending on daily essential products, says new Kantar study

Kantar said while there was a slight volume growth of fast moving consumer goods (FMCG) sales at 0.54% in January as compared to the previous year, it was purely driven by population growth of nearly 2.7%..

FMCG volume is a product of population and consumption...

Indians consumed less daily groceries and household essentials in the year to January compared to the same period last year, while more than half of Indian households did not spend on discretionary items such as soft drinks, packaged soups and juices, and on eating out, watching movies and personal grooming due to inflationary pressures, as per a just released study by Kantar, which tracks household consumption...

Also, there had been an increase in the number of households not spending on most discretionary categories in the last three months leading to January, as compared to a similar period leading to November, Kantar noted..

Kantar said one-fifth of consumers are likely to stop spending on categories like packaged juices, soups, ketchup, entertainment and eating out if prices go up further..

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