FMCG firms will bear input cost pain while maintaining entry-level size and pricing.

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Consumer goods manufacturers intend to maintain entry-level prices and not reduce the sizes of small packs despite rising input costs in order to avoid a drop in sales volumes due to inflation.

“There will be no price increase or gramage reduction for small packs because it will have a negative impact on volumes, especially when there are early signs of consumers looking to downtrade,” Mayank Shah, senior category head at biscuit maker Parle Products, said.

Entry-level and small pack sales can account for up to 55% of fast-moving consumer goods (FMCG) sales, with the exact proportion varying by product category. Small price packs such as 2, 5, and 10 account for 50-55 percent of sales for companies such as Britannia NSE -3.30 percent and Parle. Small price packs such as 2, 5, and 10 account for 50-55 percent of sales for personal care product manufacturers such as Emami NSE -1.77 percent. Small packs account for 23-24 percent of sales for personal care product manufacturers such as Emami NSE -1.77 percent.

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