Unseasonal rains caused a significant drop in air conditioner and refrigerator sales this summer, plummeting over 30% and 12-15% respectively, marking the worst performance in more than a decade. Ice-cream and beverage sales also slowed, impacting seasonal job creation, which declined by up to 30% in consumer-related sectors.

Kolkata | Bengaluru | Mumbai: Air-conditioner sales plunged over 30% in the April-June period from a year ago while that of refrigerators dropped 12-15%, making it the worst summer for them in a decade and more after unseasonal rain cooled temperatures, according to large manufacturers. Besides, the June-September monsoon has been ahead of its usual schedule. ACs and refrigerators see peak sales during the hot season.

Sales of ice-creams and beverages also slowed down from last year, said industry executives and fast-moving consumer goods (FMCG) retail analytics platform Bizom.

This has hit industry wide seasonal job creation, which declined in some cases by as much as 30% from the year earlier in sectors such consumer durables and electronics, FMCG, retail, supply chain and logistics, according to staffing firm Adecco India.

Since consumer durable manufacturers were the worst hit due to poor cooling-product sales, the anticipated growth in hiring did not happen, said business services provider Quess Corp.

“AC sales for the industry have declined 30-35% year on year in the April-June quarter whereby most companies have cut down production as dealers are piled up with stock,” said Pradeep Bakshi, managing director of market leader Voltas. “It’s the worst summer in terms of growth after almost 15 years.”

The India Meteorological Department (IMD) had predicted a harsh summer, encouraging companies to push inventory to stores, fearing a shortage like last year, when a nationwide heatwave took sales to a record. AC sales shot up 55% in the summer of 2024 from the year earlier.

However, intermittent rain and lower-than-normal temperatures in most parts of India in the critical June quarter muted sales. Growth rates were further impacted by last year’s high base.

Stocking of beverages at stores rose 11% in April from the year ago, then slowed to 3.4% in May. Beverage sales fell 9% in the first half of June from the year before, according to the latest data by Bizom, which tracks orders at eight million neighbourhood stores. A year ago, the beverages category grew 22-24% in May and June. Ice-cream orders at kiranas in the June quarter grew 3-7%, much lower than 17-26% in the same period a year ago.

Retail stocking of summer products started well in February but tapered off sequentially due to unseasonal rains and a shrunken season, said Harshit Bora, analytics head at Bizom Dairy brand Amul’s managing director Jayen Mehta said while the season started early in February, weather played spoilsport during the peak season, leading to low-single-digit growth for the icecream industry.

“Amul, however, managed to buck the trend with good growth due to capacity expansion and intensive focus on the category across channels,” he said.

FMCG demand worsened to a two-year low during the March quarter, with volume growth at 3.5%, according to research firm Kantar. Sales tracker NielsenIQ said urban India demand for FMCG products is lagging behind that in rural areas with volume growth having slowed across categories in the March quarter. Electronic products grew 4-6% in the last two quarters with premiumisation driving sales.

After the festive season, the most seasonal temporary jobs are created in the summer months, which have been a washout this year. In categories such as ACs, refrigerators, beverages, ice-cream, glucose and talcum powder, the June quarter accounts for almost 40-50% of annual sales.

After 2024’s record temporary summer job creation at 20-25% growth from the year before, there has been a considerable decline in 2025, especially in consumer-facing sectors such as consumer durables, ecommerce and seasonal products, said Deepesh Gupta, director and head of general staffing at Adecco India.