Weekly FMCG Update: Packaging costs hit; iPhone exports surge

Packaging costs face a hit
FMCG companies are concerned that rising crude oil prices, driven by geopolitical tensions, could significantly impact demand for packaged goods. This increase in input costs, particularly for crude-linked derivatives used in manufacturing, may lead to higher prices for everyday products like foods, beverages, and detergents. Such cost escalations could dampen the anticipated consumer demand recovery.

iPhone exports surge, US share grows
Indian manufacturers have significantly boosted iPhone exports, shipping over 20.4-million units from January to May 2025 — a 57% year-on-year increase. Notably, 77% of these exports went to the US, up from 54% in the same period last year. This surge in US-bound shipments is, however, leading to a decline in exports to other international markets.

Dr Reddy's faces cautious investor outlook
Investors are feeling cautious about Dr. Reddy's Laboratories because of an anticipated drop in gRevlimid's financial contribution starting in fiscal year 2026. While gRevlimid significantly boosted oncology generic sales, its high profitability means any decrease could impact margins. Management expressed confidence in achieving a 25% EBITDA margin long-term, but short-term volatility is anticipated during this transition.

Stricter checks eyed for online pharmacies
The government plans to implement stricter regulations for online medicine platforms due to increasing complaints regarding unverified prescriptions and rapid growth in the sector. Current drug laws do not adequately cover these digital pharmacies, prompting the development of new legislation.

Starbucks crowns its barista champion
Starbucks is launching a global competition for its baristas, aiming to crown a world champion and elevate its brand. Following years of regional contests, this initiative brings the company into the competitive barista circuit, mirroring events where baristas showcase skills from espresso preparation to bespoke beverages, judged by seasoned coffee experts.