Companies are also anticipating to see positive consumer sentiment in the coming quarters regarding discretionary spending. 

Consumer products makers are hopeful of easing of inflationary pressures in the coming weeks with the inking of an initial peace deal between Iran and the US. Players said there are expectations of some semblance of certainty after weeks of volatility due to the West Asia crisis.

Companies are also anticipating to see positive consumer sentiment in the coming quarters regarding discretionary spending.  However, at the same time experts pointed out that currently, ocean freight costs as well raw material costs such as aluminium and copper continue to trend at higher levels, while crude oil prices have been coming down. For players, which have significant presence in the West Asia region, this will also mean an uptick in sales.

Demand Recovery

Ankush Jain, CFO, Dabur India Ltd, said, “The peace deal is expected to have a positive impact on business, with demand likely to revive across overseas markets. It should also help ease the inflationary pressures seen recently in input material and supply chain.”

FMCG companies, especially in the non-food categories, have implemented price hikes to the tune of 3-5 per cent to mitigate the impact of inflationary pressures. Companies have also been witnessing some softness in demand in terms of discretionary spends.

Mayank Shah, Chief Marketing Officer, Parle Products, said, “ Businesses had been dealing with a lot of volatility so far due to the West Asia crisis in terms of raw material costs and at what levels they will settle. Now, hopefully, there will be some certainty and expectations are that raw material costs will settle down to lower levels.

Positive Consumer Sentiments

There were also some concerns about consumers cutting back on discretionary spending and now the industry expects to see positive consumer sentiments in the coming weeks.”

Consumer durable players have been facing the brunt not only due to higher raw material costs but also due to rupee depreciation. Most players have had to take price hikes in April.

Kamal Nandi, Business Head and EVP, Appliances Business of Godrej Enterprises Group said, “ At the moment, the raw material costs, such as aluminum and copper, remain at higher levels. Even ocean freight costs have not yet come down. However, with the inking of the deal, there are expectations of easing of raw material cost pressures in the second quarter of the fiscal.”

“In terms of demand trends, We also expect consumers, who have postponed purchases due to price hikes in categories like air-conditioners, will have a more positive outlook in the coming months,” he added.

Published on June 19, 2026