A report by GlobalData says products with medium-sized packaging will be hit hardest by changing shopper habits and inflation.
The report predicts that, as inflation continues to impact shoppers buying habits, brands will need to find new ways to increase value for money when it comes to packaging. This will result in customers being torn between bulk buying to save money and item quality.
“In response to rising inflation, consumers are either spending less by buying less overall, switching out some products to save money, or buying higher quality produce to get better value for money,” Ramsey Baghdadi, Consumer Analyst at GlobalData remarked in the report. “GlobalData forecasts that larger packs sizes will grow in volume at a rate of 4.3% per year to 2025, outpacing that of smaller pack sizes.”
But while smaller pack goods might not be hurt now, future trends could mean major changes in the industry.
“Smaller pack sizes are still expected to continue to dominate the consumer packaging market overall. Longer term, rise of both shrinkflation and larger pack sizes will lead to further polarization of packaging sizes in many product categories, with the standard medium-sized pack hit hardest,” Baghdadi wrote.
However, this could also be good news for store brands the report suggested.
“Premium-priced products are at risk of being left on shelves, as consumers switch to private label/cheaper brand alternatives. This has clear implications for change on packaging design and costs.” This trend could solely depend on economics and how consumers feel about inflation or the economy in general if there is no increase in consumer confidence.