FMCG costs ease; consumers await price reductions

Thimmiah Napanda, Managing Director & CEO, Alternicq, noted that the company and its customers prioritised supply security during the recent period of uncertainty, leading to inventory build-up at elevated raw material prices. As crude prices soften, the benefits are expected to flow gradually through the value chain. Existing inventories and contractual commitments are likely to delay immediate cost reductions. Companies are expected to first restore margins before passing on benefits to the market. Nevertheless, improved crude price stability is expected to support a healthier packaging ecosystem and demand outlook.

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