The impact of the US-Iran conflict is no longer confined to oil markets and geopolitical headlines. It is now finding its way into kirana stores and supermarket aisles, where consumers are switching to smaller packs of everyday goods as monthly budgets are already facing pressure due to rising prices.Companies across categories such as edible oils, biscuits, soaps, detergents, shampoos and staples are witnessing faster growth in sales of Rs 5-20 packs compared with larger packs. Industry executives said sales of smaller packs have been expanding 4-10 percentage points faster since April than they did in the January-March quarter, as consumers seek ways to manage rising expenses.The shift comes at a time when FMCG makers are already dealing with increased raw material and packaging costs, which are fueled by rising crude oil prices amid the Middle East chaos. While companies, as cited by ET, have already implemented price increases of 4-10% across categories since April, many are now turning to grammage reductions in smaller packs to protect popular price points.At AWL Agri Business, demand for 200 ml and 500 ml edible oil packs has strengthened significantly this quarter. The company has responded by adding production lines dedicated to these pack sizes.“Sales of smaller packs have gone up in the last couple of months, growing 8-10% higher this quarter as compared to the previous one,” Angshu Mallick, executive deputy chairman at AWL Agri Business, told ET. “We have expanded the availability of such packs. The economic stress seems to have triggered this.”A similar trend is visible in the biscuits segment. Parle Products said packs priced up to Rs 20 have recorded growth that is 3-4 percentage points higher than larger packs over the past two months.According to Parle Products vice president Mayank Shah, the rise has been more noticeable in urban and semi-urban markets, as rural consumers have traditionally depended more on low-unit packs.“It could be linked to the impact of the geopolitical situation, but it is too early to establish a definitive trend,” he said.Britannia Industries has also observed consumers moving towards lower-priced products. Managing director Rakshit Hargave recently told analysts that packs priced at Rs 5 and Rs 10 are gaining traction, while the conflict in Middle East is adding inflationary pressure. These packs account for 60-65% of Britannia’s total sales.Across the FMCG sector, small packs contribute between 30% and 60% of sales in most categories. At Dabur, they make up around 30% of the company’s business.Dabur global chief executive Mohit Malhotra said the company has started reducing grammage in Rs 10 and Rs 20 packs because increasing prices at those levels is not feasible. Companies had earlier increased grammage after the GST cut last September while maintaining existing prices.“There’s a headroom available from a pre-GST time to the post-GST time. So that comes in handy,” he told analysts recently.With consumers increasingly turning towards lower-priced options and companies seeking ways to absorb rising costs, smaller packs are emerging as a key battleground for FMCG makers navigating a challenging consumption environment.