FMCG considers price hikes and shrinkflation amid crude surge.

Thimmiah Napanda, Managing Director & CEO, Alternicq, noted that crude prices above $100 per barrel are driving sharp increases in packaging material costs and fundamentally changing industry operating models. He highlighted that procurement strategies are shifting from cost efficiency to supply continuity, with companies building inventory buffers and strengthening supplier partnerships to mitigate disruptions. Napanda believes scale, resilience and long-term relationships are becoming critical competitive advantages, particularly as volatility places disproportionate pressure on smaller players. He expects the current environment to accelerate consolidation, favouring well-capitalised and integrated packaging companies.

Smaller packs, higher prices? FMCG weighs options after crude oil prices breach $100 mark amid Iran war