Here’s How Pandemic Affected FMCG Sector

Over the past year, a series of new trends have been noticed in the FMCG industry; there are some major developments in the FMCG sector
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • May 25,2021
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  • 12 Mins Read

When the first nationwide lockdown occurred, essential needs of the Indian population surfaced. People recognised what their true disposable income is after not splurging on clothes, vacations and other opulent commodities. The realisation of having a shelter, additional income resources and savings was felt. At that moment, needs were also distinguished into essential and non-essential needs. 

Consuming food was one of the necessities that was common amidst all people. Apart from wheat, maize, pulses and vegetables, there was a vast demand for FMCG products as well. 

According to the Mint’s report, NielsenIQ’s retail intelligence team stated that India’s fast moving consumer goods (FMCG) sector reported 9.4 per cent year-on-year (YOY) growth in the March quarter aided by price increases by large companies across edible oils, packaged foods and tea, and demand for packaged foods such as biscuits, coffee, cheese, ketchup and non-food essentials. 

The report unveiled that the FMCG companies gained immensely during the quarter 1. An increase in domestic sales was noticed. In addition, various companies increased their product prices due to inflation pressure. 

Over the past year, a series of new trends have been noticed in the FMCG industry. Here are some of those developments in the FMCG sector. 


Irrespective of high demand for FMCG goods, various big companies in the niche have recognised the importance of technology. FMCG companies are integrating the latest technology into their operations. This will enhance customers’ experience and help them know about the FMCG brand. 

Technology has several advantages and one of them is that it offers convenience to the customers, thereby giving a seamless experience. 


Companies working in the FMCG niche, recognised boons of the Internet. They realised how with the help of the Internet, they can reach a wide range of customers. By forming social media accounts, companies can directly converse with customers, attract prospective clients and so on. In addition, it becomes easier to comprehend preferences of the audience and analyse their changing taste. 

By entering into the Internet realm, companies can directly sell their products to customers, thus eliminating intermediaries or middle men. They can employ an omnichannel approach and tremendously increase their sales.  

Direct Distribution 

Many FMCG companies examined the direct distribution method. They directly sell their goods and commodities to the customer rather than employ intermediaries. Rising technology and e-commerce have greatly aided in enabling this method. 

With this method, companies can remove additional expenses, increase profit margins and proliferate their business. Companies have to hire skilled employees who are well versed with technology. 

These are some of the trends that have been apparent in the FMCG industry. Besides these, there are various other trends that have been noticed in this niche. If you know any latest trend, then share with us in the comment section below.

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