Rising crude increases FMCG packaging costs and consumer prices.

Thimmiah Napanda, Managing Director & CEO, Alternicq, highlighted that elevated crude prices are putting significant pressure on packaging costs and forcing a shift from cost optimisation to supply assurance. He noted that companies are prioritising material availability and building inventory buffers to ensure continuity, even at the expense of short-term margins. Strong supplier relationships and scale are emerging as critical differentiators in navigating the volatility. Napanda believes the current environment is accelerating industry consolidation and reinforcing the importance of resilience across the packaging value chain.

The surge in crude oil prices is now affecting FMCG companies, with many items like soap and snacks likely to become more expensive.