<p> Bengaluru: Inflationary pressures, low wage growth and rising housing rentals will drag the urban slowdown for another two-three quarters. </p>.<p>A consumer preview report by equity research firm Nuvama, released on Thursday, projected that consumer goods companies will take a hit in the third quarter of the current fiscal year, with several of them raising the prices of their products such as soaps, snacks and tea. </p>.<p>The inflation in palm oil and tea, at almost 30% (on a year-on-year basis) will squeeze their margins and according to the report some of the fast moving consumer goods (FMCG) companies are set for another round of price hikes in the fourth quarter.</p>.Quick commerce set for both evolution & tight competition in 2025: Zepto CEO.<p>It also sees the portfolios of Dabur and Emami, which include chawanprash and cold creams being impacted by the mild and late winters. Under the circumstances, it expects both the price and volume growth of the staples companies to range between low and mid single digit. </p>.<p>Interestingly, contrary to this reading, another report by investment advisory Elara Capital, the alcohol industry will flourish in the third quarter on account of a strong winter. This will be particularly evident in the growth of the prestige and above segment courted by Radico Khaitan and United Spirits, while the regular segment will also see a revival. </p>.<p>The pace of recovery of quick service restaurant chains will, however, vary, being quicker for the pizza vendors than those selling burgers, the Elara Capital report by Karan Taurani stated. Yet these chains will see more store additions in this seasonally favourable quarter. </p>.<p>In contrast to the urban scene, rural demand has been reporting a gradual recovery, outpacing urban markets by dint of freebies and good rains. Overall, the Indian FMCG sector clocked 5.7% growth in value and 4.1% in volume in Q2FY25 driven by rural demand. Rural demand expanded twice as fast as urban demand in Q2FY25 at 6% compared with urban growth of 2.8%.</p>
<p> Bengaluru: Inflationary pressures, low wage growth and rising housing rentals will drag the urban slowdown for another two-three quarters. </p>.<p>A consumer preview report by equity research firm Nuvama, released on Thursday, projected that consumer goods companies will take a hit in the third quarter of the current fiscal year, with several of them raising the prices of their products such as soaps, snacks and tea. </p>.<p>The inflation in palm oil and tea, at almost 30% (on a year-on-year basis) will squeeze their margins and according to the report some of the fast moving consumer goods (FMCG) companies are set for another round of price hikes in the fourth quarter.</p>.Quick commerce set for both evolution & tight competition in 2025: Zepto CEO.<p>It also sees the portfolios of Dabur and Emami, which include chawanprash and cold creams being impacted by the mild and late winters. Under the circumstances, it expects both the price and volume growth of the staples companies to range between low and mid single digit. </p>.<p>Interestingly, contrary to this reading, another report by investment advisory Elara Capital, the alcohol industry will flourish in the third quarter on account of a strong winter. This will be particularly evident in the growth of the prestige and above segment courted by Radico Khaitan and United Spirits, while the regular segment will also see a revival. </p>.<p>The pace of recovery of quick service restaurant chains will, however, vary, being quicker for the pizza vendors than those selling burgers, the Elara Capital report by Karan Taurani stated. Yet these chains will see more store additions in this seasonally favourable quarter. </p>.<p>In contrast to the urban scene, rural demand has been reporting a gradual recovery, outpacing urban markets by dint of freebies and good rains. Overall, the Indian FMCG sector clocked 5.7% growth in value and 4.1% in volume in Q2FY25 driven by rural demand. Rural demand expanded twice as fast as urban demand in Q2FY25 at 6% compared with urban growth of 2.8%.</p>