Qudsia Bano

Declining consumer purchasing power in Pakistan has significantly shifted buying behaviour, compelling multinational companies (MNCs) to introduce smaller and more affordable pack sizes to retain market share, according to the Institute of Cost and Management Accountants of Pakistan (ICMA).

An ICMA report shows that households across the country are increasingly prioritising affordability as inflationary pressures and rising living costs limit their ability to purchase regular-sized products. This shift has led consumers to opt for low-priced, small-quantity items, especially in fast-moving consumer goods (FMCG) categories such as food, personal care and cleaning products.

The report states that this change in consumer behaviour has forced multinationals to rethink their product strategies. MNCs have expanded their range of mini-packs, sachets and low-cost variants to meet growing demand among price-sensitive buyers. The trend, according to ICMA, reflects a structural adjustment in Pakistan’s retail market, where consumers are increasingly managing expenses through smaller, more frequent purchases.

ICMA notes that the preference for small packs is not limited to rural areas but is visible across urban markets as well. Rising inflation and stagnant incomes have pushed middle-income households toward more economical purchasing patterns, further accelerating the market shift.

The report explains that local brands, which typically offer lower-price alternatives, have gained visibility as consumers adjust to tighter budgets. This has intensified competition within the FMCG sector, prompting multinational firms to adopt more flexible packaging and pricing strategies to maintain their presence in the market.

ICMA identifies this transformation as part of a broader trend shaping consumer markets in developing economies experiencing economic stress. In Pakistan, the shift to smaller pack sizes is also supported by modern retail channels and distribution networks that enable frequent restocking and wider availability of low-cost product formats.

According to the institute, the adoption of smaller pack sizes has become essential for MNCs seeking to align their offerings with evolving consumer needs. The report suggests that this trend is likely to continue as long as disposable incomes remain under pressure and purchasing decisions remain driven by short-term affordability rather than bulk buying.

ICMA concludes that the growing dependence on mini-pack formats underscores the need for businesses to adapt quickly to changing consumer realities. It highlights the importance of market responsiveness and product affordability in ensuring sustained demand in Pakistan’s challenging economic environment.

Credit: INP-WealthPk