Volume, and not price, is the lever of growth for FMCGs, study shows

A break-up of business shows that 75% of a firm's turnover is led by volume growth, while 25% is price-led

Premiumisation has been a strong and recurring theme for most fast-moving consumer goods (FMCGs) for a few years now.

The trend has seen companies roll out pricier products, aimed at tapping into the consumer’s need for a better lifestyle. Firms have also insisted that this trend is here to stay and it will only grow.

However, a closer look at an FMCG company’s turnover today presents a different picture. A break-up of turnover, according to Nielsen, shows that 75 per cent of an FMCG company’s sales is led by volume growth, while 25 per cent is price-led growth. The research agency says