FMCG Slowdown: Premium Cookie Sales Grow While Biscuit Sales Crumble Owing to Reduced Rural Demand
A major trend witnessed in the slowdown is that the cookie consumption demand has increased, while the biscuit consumption has reduced. The overall FMCG slowdown was largely led by rural markets and smaller companies with annual sales of less than Rs 100 crore.
Mumbai, August 27: In the recent FMCG slowdown, the cookie consumption demand has increased, while the biscuit consumption has reduced. According to an Economic Times report, the overall FMCG slowdown was largely led by rural markets and smaller companies with annual sales of less than Rs 100 crore, as per a Neilsen study. Parle May See 10,000 Job Cuts Due to 18% GST Affecting Biscuit Sales.
According to the report, biscuits, which are India’s largest consumer product segment is worth Rs 35,000 crore and grew 2.5 percent in the April-June quarter. The consumption in rural India, which accounts for about a third of the market, has been under stress over the past three quarters. On the other hand, the premium biscuits accounted for two-thirds of the market and grew 8 percent. Indian Economic Crisis: From Parle to Maruti, Iconic Indian Companies Hit By Slowdown And Dwindling Sales Stare at Job Cuts.
Last week, the country's largest biscuit maker Parle Products announced that things are not going well for the company. Parle said that they may have to let go, 8,000-10,000 people, if the ongoing consumption and slowdown persists. The 18 per cent GST has forced the company to hike prices which have been affecting their sales.
Due to a major slump in demand, a slowdown has hit several industries, which is leading to massive job cuts in India. From biscuits to automobiles, the situation is the same across industries, where company heads are forecasting severe job cuts in the near future if the situation doesn't improve.
(The above story first appeared on LatestLY on Aug 27, 2019 11:55 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).