'Small' pains: Inflation squeeze likely to choke FMCG volume growth again

India's fast-moving consumer goods sector is under pressure as inflation reshapes how consumers spend their money. Rather than splurging on high-end products, buyers are preferring smaller, budget-friendly options. Data suggests that inflation tends to shrink average FMCG pack sizes. Notably, urban areas are seeing a more significant shift in spending compared to rural regions. Price increases in multiple categories are likely on the horizon.