Archive · 21 Sep 2026
FMCG Companies Trim Pack Sizes to Hold Prices Amid Costs
FMCG companies are facing higher costs for making their products.
They want to avoid raising prices too much, especially on cheap products.
Instead, they may put slightly less product in the same-sized package.
This is expected to happen most with products costing Rs 5 to Rs 25.
Larger packs may lose more weight than smaller packs.
Shoppers are also buying smaller amounts because they are watching their budgets.
Some companies have already raised prices, while others are waiting.
Companies may use a mix of smaller packs, higher prices and different pack sizes to protect their profits.
FMCG companies may reduce pack sizes instead of raising prices on mass-market products.
Products priced from Rs 5 to Rs 25 are expected to see sharper grammage cuts.
Smaller packs may shrink by about 2-5%, while larger packs could face bigger reductions.
Consumers are increasingly choosing smaller purchases as they become more budget-conscious.
Food and grocery sales grew 12% year-on-year in July, compared with 8% overall retail growth.
- Who
- FMCG companies, distributors and retailers, including Dhairyashil Patil and Kumar Rajagopalan.
- What
- Companies are considering smaller pack sizes, grammage cuts and selective price increases to manage higher input costs.
- When
- Ahead of the festive season; July retail data showed the latest cited sales growth.
- Where
- India.
- Why
- To protect profit margins while avoiding sharp price increases that could reduce demand for mass-market products.
- Most affected products
- Products priced between Rs 5 and Rs 25
- Small-pack reduction
- Approximately 2-5%
- Larger-pack reduction
- More significant cuts, particularly in packs of 1 kg and above
- Food and grocery sales growth
- 12% year-on-year in July
- Overall retail sales growth
- 8% year-on-year in July
- Sales environment
- Companies are managing costs ahead of the festive season