Over the past 2-3 months, monthly household shopping bills have risen with price hikes in the range of 2 to 17 per on certain brands and categories of foods and personal care products taken by fast moving consumer goods companies.

Prices have been raised in the range 2-9 per cent on soaps and body washes, 8-11 per cent on hair oils and 3-17 per cent on select food items by companies, according to trade data and analysts.

The hike in prices comes after close to a year of declining price trends with moderating commodity prices. After raising prices in 2022 and early 2023 in order to maintain margins due to high input costs, FMCG companies held off on price hikes for most of FY24, but prices have been rising again.

While there has been a decline in crude and palm oil prices, prices of other categories of commodities such as milk, sugar, coffee, copra and barley have been on a rising trend.

Pricing actions

Management commentaries from most companies during their earnings calls have pointed to pricing growth in FY25 with inflationary trend seen in some commodities. “….overall pricing growth needle will likely point between neutral to low-single-digits for FY25,” ICICI Securities said last week in a note on the sector.

“Pricing growth is likely to come back for sector after negative pricing in FY24,” said Nuvama Institutional Equities.

Marico said in its earnings call that it had already hiked prices on select hair oil packs by 6 per cent in April and could take another round of price hikes in case of further increase in the price of copra.

Snacks maker Bikaji plans to increase prices by 2-4 per cent in FY25 and has already made a start in April, while Tata Consumer Products said it has started to take price increases to put it on par with competitors.

Market leader Hindustan Unilever had no price increases in FY24 and said it would not react to short-term variation and volatility in commodities. Pricing action would be taken only in case of “deterministic change in direction”. Dabur India and Emami also indicated low single digit price hikes in the current year.

Costlier shopping

Godrej Consumer Products increased prices on select stock keeping units of soaps by 4-5 per cent, Hindustan Unilever has raised prices of Dove by 2 per cent, while Wipro has increased price of Santoor by 3 per cent, according to Kotak Institutional Equities and trade data.

The price of Palmolive Body Wash, sold by Colgate, has increased in high single digit, while that of Pears body wash has gone up by a more modest 4 per cent.

Detergent brands from the stables of HUL, Procter & Gamble Hygiene and Health Care and Jyothy Labs saw price increases of 1-10 per cent on select packs.

HUL has increased shampoo prices across its portfolio in a range of low to mid-single digit and on skin care products by up to 4 per cent.

Coffee has been inflationary forcing Nestle to increase prices by 8-13 per cent. Maggi oats noodles price has increased by 17 per cent and ITC’s Ashirvaad whole wheat prices have gone up in low single digit.

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