Economy

Panel SA: Food packaging reduction trend gains strength in inflation

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The trend to reduce the size of food packaging, characteristic of times of high inflation and loss of purchasing power, should gain strength this year, according to Euromonitor.

In the category of chocolates and cookies, the 115 gram packages replace the 120 grams. The consumption of the smaller package in retail is expected to grow more than 80% this year before 2020, while sales of the biggest should fall by almost 4%, according to the study by the consultancy.

The advancement of smaller packages had been consolidating since last year. In a scenario of little margin to increase final prices, food manufacturers reduce the size of packaging to meet the rising costs, according to Gregory Ribeiro, an analyst at Euromonitor.

“We see the reduction taking an intensity in the pandemic, but consumers are also more attentive. All eyes are turned to retail, so brands need to be more careful to make this change,” says Ribeiro.

He claims that brands that manage to maintain final prices gain more customer confidence, even with the reduction of packages, because income is a more relevant purchase criterion at this time.​

with Mariana Grazini e Ana Luiza Tieghi

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foodFood industryinflationsheet

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