Dry August dampens large FMCG pack sales

The dry spell in August has caused downtrading in the fast-moving consumer goods (FMCG) sector in India. Buyers are shifting from larger packs to smaller ones due to financial stress and inflationary pressures. Smaller packs have grown at a faster pace than mid or high-priced packs across most FMCG categories. The rain deficit in August is believed to be fueling this downtrading phenomenon.