FMCG firms take bigger bite out of smaller pack sizes amid 3rd wave

Consumer goods firms optimise pack sizes, expecting surge in at-home consumption

- SHARLEEN D'SOUZA

With Covid cases on the rise in India once again, consumer goods companies are gearing up for a third wave of the pandemic. They are stocking up on their products, and optimising pack sizes, expecting a surge in at-home consumption in the event of tighter restrictions or a possible lockdown.

Most companies were caught off guard when the first wave of the pandemic struck in March 2020 and a nationwide lockdown was imposed. While demand for food products and essentials surged during the period, companies were unable to supply them because production was hit by factory closures. Moreover, logistics, too, suffered due to curbs on movement.

This time around, companies are prepared. They are strengthening their supply chains to ensure there is no disruption in the event of restrictions.

If the first wave saw consumers pantry-stocking on bulk packs of edible oils, with households even overstocking on groceries, this time there's a growing appetite for smaller pack sizes, signalling a possible squeeze on monthly household budgets.

Also called low-unit packs, these are value-for-money propositions in pandemic times and are hence, found attractive.