Inflation fails to dim Diwali spirit as brands curate affordable hampers

Consumers have been indulging in festive snacking and gifting for Diwali, encouraged by companies offering affordable gift packs and food hampers despite inflation concerns

This Diwali, inflation has not dampened the festive spirit of consumers eager to gift their loved ones. Consumers have been indulging in festive snacking and gifting, supported by companies offering affordable gift packs and food hampers despite inflation concerns, according to a report by the Times of India. While dry fruits, ice creams, juices, kaju barfi, and soan papdi remain top choices, brands have adjusted prices and promotions to maintain demand.

 

While inflation has made consumers cautious, the festive spirit remains strong, the report quoted Manish Aggarwal, director at Bikano, part of Bikanervala Foods, as saying. According to Aggarwal, urban consumers are mindful of their budgets, while rural areas are seeing steady demand, boosting overall festive sales by 25-30 per cent over last year.

   

Brands innovate to drive sales

 

Naturals Ice Cream is on track for a 40 per cent growth over last Diwali, despite a 7 per cent price increase, with family packs performing well. The brand also expects more footfall as Diwali celebrations extend over the weekend. Siddhant Kamath, director at Naturals, said the company is promoting online combo offers to encourage bulk purchases.

 

Meanwhile, Dabur’s Real juice gift packs, priced between Rs 100-550, aim to attract consumers by aligning with Diwali’s food-centric gifting culture. Chief executive officer Mohit Malhotra noted that the urban consumption downturn may be stabilising, with potential rural demand increasing due to higher crop yields and the recent government increase in minimum support prices.

 

Parle Products, too, expects steady sales this festive season, aided by controlled inflation on essentials like oil and wheat. "Food remains central to Diwali shopping, and even with budget adjustments, consumers are still spending," senior category head Krishnarao Buddha said in the report. Parle’s premium offerings have seen robust sales, with upcoming festivals like Chhath Puja expected to maintain this momentum.

 

Additionally, brands like True Elements reported high demand for its premium packs on quick commerce platforms, while low-priced packs are performing well on major e-commerce sites. Co-founder and chief operating officer Sreejith Moolayil told the national daily that the company introduced a sub-Rs 300 hamper to broaden accessibility, adding that demand remains strong, except in non-festive, health-focused categories.

 

Swizzle, a beverage startup specialising in ready-to-drink mocktails, has seen a 25 per cent sales increase over the last month. Co-founder Vrinda Singhal attributes this to consumers’ interest in trying new drink options during the festive season.