Indonesia’s palm oil export ban to severely disrupt FMCG companies’ sales
Ramsey Bagdadi, a GlobalData consumer analyst, offers his view
As alternative vegetable oils tend to be higher in price, Indonesia’s palm oil export ban will add further obstacles for global manufacturers such as Mondelez and Unilever to keep product prices low.
Consumers continue to be sensitive towards prices, as economic uncertainty proves to be a key influence on their decision making. According to GlobalData’s survey, the majority (*60%) of people globally claim to be extremely or quite concerned about their personal finances. Manufacturers will need to focus on price promotion strategies to keep prices down and maintain a good relationship with customers.