Good things are coming in smaller packages as household budgets tighten
Major consumer goods companies like Coca-Cola and Mondelez are shifting toward smaller packaging sizes to maintain sales as inflation pressures household budgets. While some brands focus on value-per-dollar for wealthier shoppers, others are creating entry-level price points for cost-conscious consumers.
Why it matters
This trend highlights how corporations are adapting to persistent inflation and changing consumer purchasing power to maintain market share.
Coke is going big on mini cans. Jeffrey Greenberg/Universal Images Group via Getty Images Consumer product companies are finding success in designing pack sizes for two different economic realities. Jumbo offerings continue to attract wealthy shoppers, while tighter budgets call for smaller formats. As prices spiral higher, shoppers still want nice stuff — even if they may be getting less of it. Little treats are getting littler. With US shoppers under seemingly never-ending strain , large consumer product companies are finding success in introducing smaller formats that won't break the bank. In earnings reports this week, executives from Coca Cola, Mondelez, Proctor & Gamble, and Hershey acknowledged that consumers were responding to the new price points. Coke CEO Henrique Braun kicked off the discussion Tuesday saying that lower-income customers continue to be pressured, but they are still looking for ways to buy their favorite drinks.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in