FMCG companies expect Holi to bring 20% jump in sales; here’s what people will buy most this festive season

The Holi festival season this month is likely to bring cheer for the FMCG industry, with companies selling packaged snacks, sweets, and other food products expecting to increase sales and order volumes by up to 20 per cent. FMCG firms such as Parle, ITC, Adani Wilmar, Bikano, and others, and even Dairy companies like Amul are betting big on Holi this year after two consecutive years of almost no festive cheer due to Covid-induced mobility curbs and restrictions.

“This year, we are expecting a huge, that is, around 25-30 per cent jump in (sales) numbers as compared to 2020 and 2021, especially on the back of e-commerce and modern trade doing well and also, general trade to some extent,” Krishnarao Buddha, Senior Category Head, Parle Products, told Financial Express Online. Usually, Holi brings about 15-18 per cent increase in overall sales, but it was flat for the last two years. “Consumer sentiment was very mellowed due to uncertainty around Covid,” Krishnarao Buddha said. Parle gets around 60 per cent of its annual sales from the festive season, starting from Raksha Bandhan till Diwali.

Holi is a great opportunity for businesses to raise sales of packaged snacks and sweets. “Nearly 18-20 percent of traditional namkeen and sweets sales are expected to happen this season,” said Manish Aggarwal, Director, Bikano, Bikanervala Foods Pvt Ltd. Another food brand Cornitos, for instance, gets 20 per cent of its annual sales from the Holi season.

Thy ‘Holi’ products

The festival of Holi will witness demand for mostly snacking items, sweets, and other packaged food options besides edible oils, pulses, etc. “Festive season is a great opportunity for FMCG players dealing in the sweets and snacks segments to engage with their consumers. We are expecting a rise in demand for products like Thandai, Khus & Rose Syrup, Bikaneri & Aloo Bhujia, Khatta Meetha & Lajawab mixture, Laddu, Rasogulla, Gulab Jamun, etc. There is also demand for gift packs mixed with namkeen and sweets during Holi. Last year, we launched our new namkeen products that fetched Bikano brand an additional Rs 75 crore in sales,” said Manish Aggarwal of Bikano.

Parle, meanwhile, is pinning hopes on categories like namkeen, chips, etc, because the season will have ‘a lot of house parties’ with people still not very confident about partying and celebrating out. “While we are not launching new ranges especially for Holi, we are seeing a good uptick in sales from our brand, Chatkeens and also our western snacks range including Parle’s wafer chips and Parle Full Toss. We have received 18- 20 per cent additional orders from our vendors in advance in accordance with the forecast,” said Krishnarao Buddha.

Cornitos is betting on sales of products like DIY kits, tortilla wraps, dips, and its Crusties-baked snacks. “In the last two years, we have seen an increase in the demand for healthy snack options, including our Veggie Nachos as well as nuts and seeds range. We are betting on the range of healthy yet tasteful options this festive season,” said Shobhit Agarwal, Director, Cornitos.

Will high Holi sales spill over into a good summer season?

FMCG companies are preparing for a surge in orders this Holi, in all aspects, be it logistics, production side, supply chain, etc. Manish Aggarwal said, “We are strategising it very well from our side with respect to better logistics, supply chain management and marketing strategies for our products. We are also having meetings with our dealers and distributors across the country for designing and packaging of our products keeping in mind the upcoming festivals. With respect to inventory, we have made arrangements to keep the buffer stock ready so that our dealers do not face issues wherein the product goes out of stock due to increase in demand.” Online grocery companies too are announcing promotional events and sales around Holi.

While such is the sentiment in the sector, the question is if this surge will trickle down to the entire summer season or not: “100 per cent,” Parle’s Krishnarao Buddha said. “Consumers are starved of a normal regular life and once things start settling with Holi being the beginning point, there will be a significant uptick this summer season and the further festive season.”