Home > Uncategorized > Cost pressures lead to rise in FMCG prices

Cost pressures lead to rise in FMCG prices

Palm oil is a key ingredient that goes into making soaps. It has moved up 70 per cent in recent months, touching $680 per tonne from $400 per tonne earlier. Besides palm oil prices, cost of packaging is also high. This has either lead to or is expected to lead to a rise in price of soaps. The companies are taking to either price hike or a weight reduction.

For the first time in the past 20 months, Hindustan Unilever Ltd (HUL) – the market leader in the Rs12,000 crore Indian Soaps Market– has raised prices of its toilet soap brands including Lux & lifebuoy. It has also selectively cut product weight while retaining the maximum retail price. Godrej Consumer Products (GCPL), the second largest player in the soaps industry also believes that cost pressures are rising, however, it plans to adopt the wait and watch approach.

It is not only the soap majors who are raising prices, but also the edible oil manufacturers. Marico has increased the price of some of its brands including Saffola and Parachute.

To know more on the details of the rise in price of each brand: click here

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