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1 week agoon
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Ann UruvathIf you’ve recently picked up a ₹5 sachet of shampoo or a single-serve pouch of ketchup while grocery shopping or ordering online, you’re not alone. From pantry staples to personal care, Indian consumers, especially younger, value-conscious buyers, are increasingly gravitating toward smaller-pack offerings. What was once seen as a rural-market tactic or a budget workaround has now emerged as a mainstream strategy.
Whether it’s to try out a new product without splurging or simply enjoy the convenience of quick delivery, small packs are transforming consumption habits across the country. Driven by rising inflation, digital commerce, and an evolving consumer mindset, these compact offerings have become a powerful tool for both legacy FMCG players and emerging regional brands to stay relevant and drive growth.
As Roosevelt Dsouza of NielsenIQ explains, “Smaller packs offer a lower entry cost, making them more accessible, particularly during economic uncertainty or high inflation. They also promote trial for aspirational brands in rural markets.” By offering a low-risk entry point, small packs make premium products more accessible and boost brand discovery.
Data from NielsenIQ shows significant traction in categories like staples, skin creams, chocolates, toothpaste, and shampoo. Notably, in Q4 of 2024, while staple prices increased by 7.6%, average pack sizes dropped by 4.5%. Brands are clearly recalibrating their strategies to ensure continued engagement despite rising costs.
These smaller formats are often easier for consumers to buy repeatedly, increasing frequency of purchase and shelf visibility. Additionally, for daily-use items like cooking oil or detergent, smaller packs reduce perceived spending, making budgeting easier for cost-conscious households.
Cremica’s rollout of single-serve packs of ketchup, mayonnaise, and pizza sauce exemplifies how brands can tap into new markets using compact formats. These once urban-centric products have now found a place in over 20,000 retail stores, including those in semi-urban and rural locations. “With increased exposure to new cuisines and the growth of food delivery, consumers are experimenting more,” says Akshay Bector, CMD of Cremica. “Small packs help bring new users into our brand ecosystem.”
For Cremica, the small-pack innovation not only expands reach but also enables easy trials and on-the-go consumption. These packs are particularly popular in quick-service restaurants, local eateries, and kirana stores, helping drive trials in low-commitment, impulse-buy settings.
The small-pack trend is especially prominent in metros, driven by the convenience of e-commerce and quick commerce. Lightweight, portable items are well-suited for fast delivery, and digital platforms like Blinkit, Zepto, and Instamart have become key channels for these products. Meanwhile, rural markets are showing an opposite trend—slight increases in average pack sizes—underscoring the urban-centric nature of this packaging shift.
Urban consumers increasingly expect immediacy and flexibility. Small packs meet this demand by offering products that are easy to deliver, store, and consume. Furthermore, brands that optimize SKUs for online delivery are gaining an edge in last-mile logistics and customer satisfaction.
Small and regional brands are benefiting enormously from the small-pack boom. Kantar data shows that while big players like HUL and Nestlé grew by 2–3% in urban markets, smaller brands saw a 5–7% rise in sales volumes. Lean distribution models, competitive pricing, and consumers’ willingness to experiment are fueling their growth.
There’s also a surprising edge: small packs often deliver better value. Pouches and sachets of products like shampoo and ketchup are often cheaper per ml than bottles, largely due to lower packaging costs and efficient use of volume—especially when bought in multipacks. Additionally, the absence of rigid plastic containers makes them environmentally friendly and cost-effective to manufacture.
Mass consumers, especially the younger generation, are also more likely to explore new brands when the investment is small. This trial-friendly dynamic creates more space for regional and D2C brands to flourish alongside household names.
What started as a response to inflation has now become a long-term strategic play. Direct-to-consumer (D2C) brands are thriving, with GoKwik reporting a 36% surge in orders during Republic Day sales. Redseer reports that 96% of over 3,500 beauty and grooming brands are now primarily online.
Even beyond FMCG, sectors like electronics and fashion are seeing similar patterns. The number of online-only grooming device brands rose from 399 in 2022 to 571 in 2024, thanks to Gen Z’s preference for value and function over brand loyalty. From fashion to food, compact, functional, and stylish products resonate more with consumers seeking both affordability and quality.
Legacy FMCG giants are taking notice, acquiring nimble startups and adapting packaging strategies to remain competitive. The small pack, once a tactical move, is now a powerful growth engine—affordable, accessible, and built for a digital-first consumer base.
In conclusion, small packs are more than a packaging decision. They represent a transformation in how brands connect with consumers, manage logistics, and scale their presence across India’s diverse retail landscape. As affordability and convenience take center stage, the small pack is poised to define the next phase of growth in India’s FMCG story.
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