The news: Major food and beverage companies are rethinking packaging by investing in both bigger and smaller formats.

• Nestlé says shoppers are skipping midsize packs in favor of bulk purchases or smaller, lower-cost formats as the price squeeze intensifies, per The Wall Street Journal.
• Brewers are making a similar bet, investing in miniature beer cans to appeal to consumers seeking lower prices and portion control, per a separate Wall Street Journal article.

Why this matters: While the standard pack size has long been the default choice for grocery and beverage brands, it is losing its footing as shoppers pull in two directions at once.

• Households are stretching their budgets by buying in bulk, while others are trading down to smaller, cheaper units to manage weekly cash flow.
• Additionally, weight-loss drug users are reshaping portion needs, as households with a GLP-1 user have cut grocery spending by 5.5%, and roughly 21% of US households now include a GLP-1 user, more than double the share in January 2025, per PwC.

Implications for CPG brands and retailers: The standard pack size—built around a weekly shopping cycle—no longer reflects how many consumers actually buy. Shoppers are splitting into two camps: those maximizing value through bulk and those minimizing spend or portions through smaller formats.

That creates both opportunity and risk. By expanding pack sizes—from mini formats to bulk multipacks—brands can capture both ends of the market without cutting prices on core products. But it requires investment in manufacturing, packaging, and shelf space at a time when many companies are trying to simplify assortments and protect margins.

Those investments are important because those that stand still risk losing relevance. Retailers like Walmart, Kroger, and Albertsons are already using private labels to fill the gap, upgrading packaging and quality to win over shoppers who might otherwise stick with national brands. More than half of higher-income shoppers now regularly buy premium private label products, per Simon-Kucher's Global Shopper Study.

Pack-size strategy is becoming a competitive lever. Brands that test smaller formats for GLP-1 and value-conscious shoppers while keeping bulk options attractive will be better positioned to hold share than those that continue to rely on the traditional middle.

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