When package size matters

Lifestyle changes have played a major role in defining how the packaged food and beverage industry evolves. And it is no different when it comes to rightsizing products, with manufacturers offering consumers the choice of buying a product in their preferred pack size. But what is driving these consumer preferences, and how are manufacturers responding?

By Angela Lu, president and general manager, SIG Asia Pacific South

The demand for packaging formats and sizes are polarised based on product categories. Furthermore, meeting these demands with flexible options has helped manufacturers in most regions to retain and grow their market share, especially at a time when both buying power and consumption habits have been impacted by the current global inflation.

Why small sizes still rule

Small sizing has been big for some years now, owing to the rise of on-the-go consumption and demand for single-serve products.

One of the primary reasons is affordability. Cost plays a major role in the prevalence of small-sized packs in many markets. In regions such as India, South America, Europe, the Middle East and Africa, the shift to small sizing is driven by the need to keep a product within an affordable price range. Reaching a magic price point can be the differentiator for brands in India, for example, where the 125ml version of an SIG carton is popular within the fruit drinks and nectars segment.

The relation between product categories and pack volumes is a well-established factor. Smaller pack sizes have already been popular in product categories that are ready to drink, such as flavoured milk, juice, and even protein drinks. But now premium brands in some regions, such as the Americas, are offering smaller volumes in other categories – like condensed milk, cooking creams and even plant-based creamers – to retain the quality-conscious but price-sensitive consumer.

Read the full article here.