Food and beverage prices rose by up to 15% as of February 2022, according to Qatar

The strike of carriers, the increase in fuel prices and other national and international crises have had a direct impact on the increase in prices of various industrialized products, such as food, dairy products, beverages, among others. This problem is causing some modifications in the FMCG (Fast Moving Consumer Goods) family basket, according to Kantar Worldpanel Division.

According to Kantar, in what corresponds to the increase in cost, “the upward trend is important.” Between January and February 2022, the value of the food category increased +15% compared to the same period in 2021. In beverages, the increase is +15%, in dairy products +5%, in personal care +9% , +10% in home care and +12% in pet food.

“The total mass consumption remains positive during the first two months of the year, although we are observing that the purchase of some categories such as rice, oil, noodles, among others, has been slowing down for eight months,” says Cecilia Ballarín, Commercial Manager of Kantar Worldpanel Division.

In the case of household dairy consumption, measured in volume, it fell -2% in January and February of this year, compared to the same period last year. The same in the case of pet food (-4%). Meanwhile, categories such as food, personal care and home care consumption grew +3%, +2% and +1%, respectively.

“This phenomenon, where prices go up and consumption goes down, causes some changes in consumer behavior. For example, the purchase frequency has been reduced by one visit. Likewise, when price increases exceed 10%, we do see a consumer more inclined to move towards cheaper brands”, adds Ballarín.