In a notable shift in consumer behaviour, mid-sized and multi-use packaging is gaining popularity over products with lower price points. According to a report by TOI, data from Bizom, a retail intelligence platform, reveals that consumers are increasingly opting for mid-sized packs in categories like confectionery, personal care, and home care during the June quarter of 2023.
The data indicate that mid-priced packs in the confectionery segment experienced growth of 2.5% during the quarter, while high-value packs in the same category declined by a similar proportion. Similarly, in the personal care sector, mid-priced packs witnessed a growth of three percent, while low-priced packs declined by 3.4 percent. Home care products also saw a surge in mid-priced packs, with a notable growth of 7.1 percent, whereas low-priced packs faced a decline of 6.8 percent.
Bizom’s Chief of Growth and Insights, Akshay D’Souza, points out that consumers are increasingly seeking greater value in confectionery, personal care, and home care products. The shift towards multi-use, mid-sized packs offers the flexibility of limited spending while providing more value than smaller-sized packs.
Despite the evident trend in consumer preference, there was a contraction in the confectionery and personal care categories by 7.6 percent and 11.5 percent, respectively, during the June quarter of 2023, compared to the same quarter last year. However, the home care products category bucked the trend, experiencing impressive double-digit growth of 14.7 percent.
Akshay D’Souza explains that although inflation is lower this season, it has still affected the consumption of discretionary products like confectionery, which has not seen any significant drop in prices. This has led to a shift in consumer spending from high-value to mid-value packs as consumers rationalize their wallet share for this category.
Interestingly, Mondelez, a leading chocolate maker in the country, refutes the trend described by Bizom’s data. Desmond D’souza, Senior Director of Sales at Mondelez India, states that they have not observed a significant shift in growth patterns across price points for the categories they operate in. According to him, the trend mirrors that of the previous year, with a transition from price-led growth to a consumption-led growth strategy. Mondelez has also been offering more schemes for larger packs, incentivizing customers to opt for multi-use packs.
The consumer preference for mid-sized packs over value packs indicates a changing landscape in the FMCG sector. As consumers seek greater value and flexibility in their purchases, businesses will need to adapt their marketing and product strategies to cater to this evolving demand.