High inflation persisting for over three and a half years in Bangladesh’s economy has not only eroded purchasing power but also reshaped conventional market dynamics. As prices of essentials such as rice, lentils, and edible oil continue to rise, middle- and lower-middle-income consumers are increasingly adopting austerity measures. Once-popular “family packs” or large-sized packages are now often left unsold on grocery shelves, while smaller packs, “mini packs,” and ultra-small SKUs (stock keeping units) are taking their place. Consumers are shifting from bulk monthly stocking to a ‘buy only what is needed’ approach due to limited cash on hand and uncertainty about the future.
Products that sell quickly, are relatively inexpensive, and require frequent purchasing, such as food items, soaps, detergents, and pharmaceuticals, are categorised as fast-moving consumer goods (FMCG). The FMCG sector is broadly divided into two segments: food and non-food consumer goods, according to industry sources.
Market analysis suggests that Bangladesh’s FMCG market is valued at around $4 billion. Rising living standards among the middle class were the key driver of this vast market, covering packaged foods, beverages, cosmetics, and home care products. However, data from 2024 and 2025 indicate that current growth in the sector is largely price-driven. In other words, the market is expanding not because consumption volume is increasing, but because rising raw material costs and dollar exchange rates are forcing companies to increase prices. In real terms, growth in product volume has stagnated or even turned negative.
Field observations from major markets in the capital, such as Karwan Bazar, Shantinagar, Notun Bazar, and Rampura, as well as neighbourhood shops, reveal a clear shift in consumer behaviour. Households that once bought one kilogram of powdered milk or two kilograms of detergent per month are now opting for mini packs priced at BDT 5 or 10. Similarly, for products like biscuits, noodles, and beverages, smaller packs priced at BDT 20–30 are seeing the highest demand, instead of 500-gram options.
In fact, financial hardship is the main reason for the consumer behaviour’s shift. Due to high inflation, real incomes have declined, making people reluctant to spend large sums at once. A typical private-sector employee now finds it safer to buy a mini pack priced at BDT 20 rather than spending BDT 1,000 on a large bottle of lotion or shampoo. This allows them to retain the remaining cash, which provides a sense of psychological security. Industry insiders say that maintaining “power price points” of BDT 5, 10, or 20 has now become a matter of survival for manufacturers.
Currently, 21 multinational companies operate in Bangladesh’s FMCG sector. However, in recent years, they have faced intense competition from local corporate giants such as PRAN-RFL Group, Meghna Group of Industries, City Group, and Akij Economic Zone. Local companies are rapidly capturing demand for small packaged goods due to their strong grassroots distribution networks and faster decision-making capabilities. Meanwhile, the exit of multinational firms like Procter & Gamble from Bangladesh after establishing a strong presence over three decades has further highlighted the internal challenges within the sector.
One of the largest domestic suppliers in the FMCG market is PRAN-RFL Group. According to company data, the contribution of small packs has increased by 13 percent over the past two years. In the noodles segment, the share of single or small packs has risen from 12 percent to 27 percent. For biscuits, the contribution of small packs has surged from 12 percent to 60 percent, an almost fivefold increase. Powdered milk’s share has grown from 70 percent to 88 percent, while mustard oil (80 ml packs) has increased from 70 percent to 80 percent. The contribution of one-kilogram packaged rice has risen from 50 percent to 60 percent, and for aromatic rice, from 92 percent to 98 percent.
Kamruzzaman Kamal, director (Marketing) of PRAN-RFL Group, told Bonik Barta, “Since the Russia-Ukraine War’s impact began to be felt in Bangladesh, demand for smaller packs within family pack categories has increased. Consumers are buying more small packs instead of larger ones. Products priced at BDT 5, 10, or 20 have seen rising demand. Over the past two years, the overall contribution of our small packs has increased by 13 percent.”
He further said, “The FMCG sector growth is now entirely price-driven. Market growth is apparent because of the rising costs of raw materials and the US dollar, which have led companies to increase product prices. To retain consumers, products are being sold at very thin margins. In many cases, companies are also reducing product weight while keeping prices unchanged to survive in the market. Because increasing prices further would put additional pressure on consumers. This is how the FMCG sector is currently operating.”
One of the key domestic suppliers in the FMCG market is the Meghna Group of Industries (MGI). Its product range includes flour, powdered milk, biscuits, tea, soft drinks, bottled water, and sugar. Family packs of 400–500 grams of powdered milk previously accounted for around 70 percent of total sales, but this share has now dropped below 60 percent, according to company sources. Since 2024, smaller SKUs priced at BDT 10–20 have seen increased conversion, with growth now reaching around 25 percent.
Companies have been forced to reduce pack sizes, with people’s purchasing power stagnating while product prices continue to rise. Meghna Group noted that its smaller milk powder packs, previously 25 grams, have now been reduced to fit a BDT 10 price point. To capture more consumers, the company has even introduced five-gram packs. Similarly, the company has now launched 50 grams pack alongside 75 grams pack.
The same trend is visible across bottled water, soft drinks, tea, and biscuits. Since the post-COVID period and the impact of the Russia-Ukraine War, raw material prices have increased significantly, according to Meghna Group. This triggered a structural shift across the industry. The entire sector has undergone a “shrinkflation.” For example, where a BDT 10 biscuit pack previously contained around 70 grams, it now contains only 35–40 grams.
Due to declining purchasing power, demand for SKUs priced at BDT 50 or above has weakened, while product consumption priced at BDT 5–10 has increased. In the energy drink market, demand has shifted from a 250 ml pack priced at BDT 30 to a smaller 200 ml pack priced at BDT 20. In the tea segment, demand for 400-gram family packs has not dropped significantly; however, households that previously consumed such packs within a month are now stretching them over a longer period.
With rising input costs, companies are often maintaining prices by reducing product weight to retain market share, even when profit margins are minimal. This practice is globally known as shrinkflation.
When asked about sales trends across family, small, and mini packaged products, SM Mujibur Rahman, head of accounts at MGI, told Bonik Barta, “It isn’t the case that sales of small or mini packs have increased across all product categories. But there has been a price increase in certain segments. For example, sales of 25-gram and 75-gram powdered milk packs have increased. SKUs priced at BDT 5–10 have seen higher demand. Sales of BDT 10-pack instant noodles have also risen. This is mainly because of the decline in consumers’ purchasing power.”
Food inflation has remained persistently high for a prolonged period, according to the Bangladesh Bureau of Statistics (BBS) data. Savings among low-income groups have consequently been depleted. Many consumers are shifting away from branded goods toward loose or non-branded, lower-cost alternatives.
Bangladesh aims to become a $1 trillion economy by 2034 in line with national economic targets. Analysts note that achieving this goal will depend on controlling inflation and increasing cash flow in the hands of low- and middle-income groups.
The rising demand for smaller FMCG packs is also evident at the ground level. Nilufa Yasmin, a 23-year-old shopper at Karwan Bazar, shared her experience. After graduating from university, she joined a private company last year with a monthly salary of BDT 25,000.
She said, “When I was a student, I used to buy larger packs of soap, shampoo, and cosmetics. They lasted a long time, and my family covered the expenses. Now I manage my own costs — rent, transport, food, everything has become more expensive. So I use mini-pack shampoo instead of bottles. For noodles, I prefer packs priced between BDT 50–60 instead of larger ones. I follow the same approach for other products. Rather than creating financial pressure by buying in bulk, I purchase only what I need when I need it. It’s not just me; I think most low-income people do the same.”
A shopkeeper at Raifa Store in Bhatara Notun Bazar said, “There are fewer buyers for large packs of products like oil, powdered milk, biscuits, noodles, soap, and shampoo. Items priced at BDT 10, 20, or 50 have higher demand and sales. The same customers often return every two to three days to buy the same products.”
Shafiqul Islam, a manager at a rice shop in Karwan Bazar, noted, “People used to buy rice in bulk. Many salaried individuals would purchase their entire month’s supply at once. Now, such customers have decreased significantly. Instead, the number of buyers purchasing rice in small quantities has increased.”
Market analysts warn that the emerging ‘mini-pack culture’ in the FMCG sector may not be healthy for the market in the long run. It is contributing to an increase in per capita plastic waste and weakening long-term brand loyalty. However, in the current crisis, companies have little choice but to produce mini packs or smaller SKUs to remain viable.
Masud Khan, chairman of Unilever Consumer Care Limited and an independent director at Singer Bangladesh Limited, British American Tobacco Bangladesh Company Limited, and Marico Bangladesh Limited, told Bonik Barta, “For the past two years, consumers have shown a stronger preference for smaller packs compared to larger ones. This trend is primarily driven by inflation, which has reduced purchasing power while product prices have increased. But if we consider Unilever Consumer Care, we’ve managed to sell somewhat larger packs in the last and current quarters. This indicates a slight shift in consumer behaviour. Our sales declined in the first quarter due to the national election and Eid holidays. But we’re now seeing good growth in sales this month.”
The FMCG sector’s current state essentially reflects the country’s broader macroeconomic reality. Consumers are no longer prioritising luxury; instead, they are becoming more calculated in spending for survival. Large packs have lost their appeal, and millions of households are now relying on smaller packages. Without policy support from the government and effective control of inflation, both investment and growth in the sector could face significant risks.
ABM Shahidul Islam, a professor in the Department of Marketing at University of Dhaka, said, “The COVID-19 pandemic, the Russia-Ukraine War, and the recent Middle East crisis have significantly increased the living cost. Inflation has risen over the past few years. Despite not increasing incomes for salaried individuals, they have to purchase goods for their livelihood. As a result, people are cutting back on expenses to align with rising prices. Most buyers of mini-pack products belong to the lower-middle and low-income groups, who can’t rely on external support. So, they are forced to reduce spending and adjust their lifestyles.”
Regarding the economic instability, he added, “Small economies like Bangladesh are particularly vulnerable to global economic instability. Consumers’ purchasing capacity reflects many underlying aspects of a country’s economy. Policymakers must consider the needs of low-income populations. The government alone can’t address this crisis. Because the private sector generates most employment. So the government should provide policy support in this sector. A fair and safe business environment will help expand the economy and increase employment and incomes.”