This report examines the early impact and short-term outlook for the Coronavirus (COVID-19) global pandemic on the fmcg and services industries in India. The initial spike in demand for essential categories is expected to normalise post lock down, and industries requiring discretionary spending will be heavily impacted. In addition, consumers’ lifestyles, food habits and buying behaviour are likely to undergo a paradigm shift.
COVID-19-led stringent lockdown has restricted economic activity across the country and has impacted the economy’s growth even further. The lockdown which began 24 March has restricted manufacturing activities and disrupted the supply chain across industries bringing the economy to a standstill, with the recovery post-lockdown likely to be slow.
With people restricted to their homes coupled with limited access to foodservice, consumers are cooking more at home which has increased the demand for packaged food and home care products. Concern about infection will keep consumers under home seclusion post-lockdown as well and contribute to demand for these products remaining stable.
Consumers to spend more cautiously on non-essential items
Discretionary categories to see biggest impact during and post the lockdown. Furthermore, the economic impact leading to salary cuts and increased unemployment levels will make consumers more cautious about their spending on discretionary categories at least in 2020.
The heightened awareness of personal hygiene and health, due to fear of contracting the virus, has led to a surge in sales of personal and home care products including liquid hand wash and sanitisers, laundry and surface care. Consumers are also paying more attention to their health, which is aiding the demand for immunity-positioned supplements.
Consumers will continue to avoid crowded places and look for safer access to products and services in 2020. While traditional grocery retailers will see a short-term spike in demand due to ease of access, e-commerce will benefit in 2020 and beyond as more consumers start to shop online.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page