The current trend among consumers is shifting towards mid-sized and multi-use packaging for products, rather than solely prioritizing low-priced items.
According to data from Bizom, a retail intelligence platform, there was a notable increase in the adoption of multi-use, mid-sized packaging across categories like confectionery, personal care, and home care products during the June quarter of 2023.
During the quarter, there was a 2.5 percent growth in mid-priced packs within the confectionery category. Simultaneously, the high-value packs in the same category experienced a corresponding decline in growth.
Consumer preference for mid-priced packs in personal care goods increased by three percent, while low-priced packs experienced a decline of 3.4 percent. In the home care segment, mid-priced packs saw a significant rise of 7.1 percent, as consumers shifted from low-priced packs, leading to a decrease of 6.8 percent in that category and driving overall growth.
Akshay D’Souza, Bizom’s Chief Of Growth and Insights, said, “Consumers seem to be looking for greater value among confectionery, personal care as well as home care products. Here we see a strong movement into multiuse, mid-sized packs that offer the flexibility of limited spending and greater value than smaller-sized ones.”
In contrast to the prevailing trend, the confectionery and personal care sectors experienced a decline of 7.6 percent and 11.5 percent, respectively, during the June quarter of 2023 when compared to the corresponding period in the previous year.
Home care products have exhibited substantial growth, with a double-digit increase of 14.7 percent.
“In this season, though inflation is lower, it has still impacted the consumption of discretionary products including confectionery where there have been no real drop in prices. As a result, we do see spending shifting from high to mid-value packs as consumer wallet share for this category gets rationalized,” said D’Souza of Bizom.
Nevertheless, Mondelez, a prominent chocolate manufacturer in the country, has chosen to buck this trend.
According to Desmond D’souza, Senior Director of Sales at Mondelez India, the company has observed no notable changes in the growth patterns across price points for the categories it operates in.
“The trend is very similar to last year and we continue to experience a shift from a price-led growth to a consumption-led growth strategy and there are more schemes being offered for higher size packs. This is helping incentives customers to move to these multi-use packs,” said Bizom’s D’Souza.
In home care, there’s a shift towards consumption-led growth in detergents, although slower, as compared to toilet and floor cleaners.
