Future Grocery Stores May Feature Smaller Packaging

The future of food packaging is expected to be smaller, according to a new report. Unlike stealth shrinkflation, which reduces product quantity in the same-sized package, the new era of smaller portions is part of the selling point. Traditional packaging strategies prioritizing upselling, pantry loading, and increased consumption are becoming less relevant.

Manufacturers, retailers, and designers must rethink their packaging formats to meet the needs of multiple shifting consumer trends. Household sizes are decreasing, living costs are rising, and the growing adoption of GLP-1s means more consumers are buying less. Companies need to think smaller, as packaging design for high consumption and big families is no longer relevant.

Already, CPG giants like PepsiCo have begun testing smaller units. Mike Del Pozzo, president of the company's U.S. beverages division, said in June that the company was introducing mini cans at a low price point and considering new price points and pack sizes for other beverages too. Campbell's rolled out 2.5-ounce single packs of Goldfish that retail for less than $2.

Smaller packaging sizes are showing up across soft drinks, ready-to-eat cereal, and salty snacks. Average household size has fallen from 2.6 people in 2000 to 2.5 people today. At the same time, food-at-home prices have risen 2.7% year over year as of June. Smaller packs, trial sizes, mini cans, and portioned servings are appealing to a new generation of shoppers.