Middle East conflict squeezes Indian FMCG: palm oil +11%, HDPE +56%, prices hiked 3-7%

Geopolitical shock is rippling into Indian grocery aisles. Palm oil up 11%, Brent +32% and HDPE packaging resin +56% have pushed FMCG raw material costs 8-10% higher. Companies have already taken 3-7% price hikes, with further increases and grammage cuts expected across F&B and HPC through H1 FY27. Gross margins compressed 50bps YoY.

— Source publishedThu, 28 May, 2026, 12:02 IST·First seen Thu, 28 May, 2026, 12:20 IST·Source Times of India · Business

What happened

Indian FMCG sector · Middle East conflict is driving raw material inflation across Indian FMCG. Palm oil up 11%, HDPE packaging up 56%, Brent up 32%. Companies

Key facts

  • raw material +8-10%
  • price hikes 3-7%
  • palm oil +11%
  • Brent +32%
  • HDPE +56%
  • gross margin -50bps YoY

Why this matters

Margin-stressed regional FMCG players become attractive bolt-on targets at compressed multiples, particularly those with concentrated palm oil or plastic packaging exposure.