Pack size and channel strategy matter
The larger the household, the more they spend. The smaller the household, the more they grow. As Thailand’s population becomes more urban, household size is shrinking; people tend to live alone or as a couple, and after they get married or have children they often move out of the family home. This is driving tremendous growth in the number of small households, while larger families with five or more members are becoming fewer in number. This trend is not only impacting FMCG as a whole, but also main sectors within the market such as Food and even Food Preparation.
As we know, the larger the household the more they consume – however urbanisation continues to shrink households, leading to high growth in small (1-2 members) and medium (3-4 members) households. FMCG spending from large households still grew by around 3.4% in Q3 of 2021 compared to the same period in 2020, but the number of households of this size and their contribution to market share is getting lower and lower.
Why should the reduction in household size be a concern for brands? Since each pack size has its own role – for example, large pack sizes for stock up and small packs for immediate consumption – and buyers have a specific mission for each channel they shop in, pack size and channel strategy will become more important.
