MUMBAI: The war-led volatility in energy markets coupled with the risk of food inflation amid projections of below-normal monsoon rains this year could weigh on FMCG volume growth, Worldpanel by Numerator (formerly Kantar) said in its update on Wednesday. It estimated volume growth to drop to 3-4% if the situation doesn't improve, as an unstable domestic macro-environment may prod consumers to cut back on discretionary spends and reduce shopping trips.

FMCG industry volume growth may soften to 3-4% due to rising crude oil prices and weather-related food inflation, warns report.

Indian FMCG volume growth is expected to slow down this year. Geopolitical tensions and a potential below-normal monsoon are key concerns. Companies may implement pricing…