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D2C brands brace as input costs surge and consumer spending to fall 5 to 6 percent
Economy
Published on 15 May 2026
Some brands see AOV drop as buyers buy fewer items
D2C brands are bracing for a tough quarter as rising input costs and a weakening rupee squeeze margins while demand softens. Analysts expect consumer spending to fall 5–6% over the next three months, driven by inflation that pushes shoppers toward essentials and cuts discretionary buys. Costs have already jumped across categories, including a 25–30% spike in beverage and perfume packaging materials. Conglomerates can hike prices, but smaller cash-burning brands face working capital stress and lower average order values.
- Analysts project consumer spending may drop 5–6% next quarter
- Input costs rose from West Asia linked disruptions, plus fuel-driven logistics pressure
- Beverage aluminium cans and perfume glass bottles saw 25–30% cost increases
- Major FMCG players like HUL are hiking prices by 8–10%
- Founders report lower average order values and weaker offline footfall
- Some brands plan price increases up to 10% or modify packaging to protect margins
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times