IMPACT OF COVID-19 ON FMCG INDUSTRY

A study on impact of COVID- 19 on FMCG industry and consumption of FMCG products

by consumers in Mumbai.
Bhumika Jain, SYBAF
Priya Ghiya, FYBFM

ABSTRACT

The COVID -19 pandemic hits the global economy, India’s real GDP decelerated to it
lowest in last 6 years. One of the major is sector impacted by this is fast moving consumer
goods (Fmcg). The fast moving consumer goods (Fmcg) sector is an important contributor of the
Indian economy. FMCG products are consumed by all sections of society. The majority of consumer’s
income is spent on these products. This sector has shown an amazing growth and is fourth largest
sector of Indian economy . Because of Covid-19 and announcement of lockdown lead to increasing
demands for FMCG products massively owing to panic buying by consumers and companies had to
increase production. The consumers are likely to curtail their discretionary spending which would
significantly impact the sector’s growth further. However, if the supply and logistics disruptions are
This paper focuses on how Covid-19 has impacted FMCG industry and consumption of FMCG
products by consumers in Mumbai.

RESEARCH METHODOLOGY
The collection of primary data was carried out with the help of a questionnaire through survey method. The
secondary data collection is from the internet, magazines and reference books.
SAMPLE SIZE:
The study was done with the primary and secondary data. The collection of primary is carried out on the basis
of questionnaire, discussion and observations were drawn. The questionnaire received 243 responses. The
questionnaire was filled by people belonging to different walks of life staying in Mumbai.

INTRODUCTION

The Covid-19 has a huge impact on economy and one of the major impact is on FMCG sector which is
4th largest sector of India. Because of COVID-19 government declared lockdown which has resulted in
increase in demand and consumption of FMCG products massively. Owing to this panic buying by
consumers the companies need to increase the consumption. In order to increase the production the key
problem is shortage in work force. The workers can’t go on work because of lockdown and the
transportation of good has become difficult because of restriction in movements by state government
which is disrupting the supply of products.Worforce is a problem when it comes to
manufacturing as well as delivery of the product.