Price Pack Architecture: A Strategic Growth Lever for FMCG Resilience and Relevance

In a margin-compressed, inflation-weary world, consumer goods companies must reevaluate nearly every lever of profitable growth. 

While pricing and promotion have historically dominated revenue growth management (RGM) agendas, price pack architecture (PPA) is emerging as a strategic imperative — not just for defending margins but also for unlocking consumer relevance, brand differentiation and operational agility.

At its core, PPA is not about pack resizing for its own sake. It is about engineering product formats that align with how consumers perceive value, shop across channels and evolve their usage behaviors in response to economic pressure. 

When implemented rigorously, PPA allows brands to expand consumption occasions, capture a higher price per unit and mitigate margin erosion. Roland Berger research shows that optimized PPA can boost EBIT margins by up to four percentage points — even when revenue is only moderately increased​.

The Case for Action: Why PPA Now

Inflation has fundamentally reshaped consumer behavior. Shoppers are trading down, shifting toward private label, delaying purchases and navigating omnichannel ecosystems to find value​. At the same time, manufacturers face rising input costs, tight supply chains and retailer pushback on price increases. Traditional volume-based growth strategies are faltering.

Enter PPA. When deployed effectively, brands can redefine value without offering deep discounts or margin-destroying promotions. Whether through trial-size formats to encourage new user entry, family-size packs that drive expanded consumption or premium packaging that signals higher quality, PPA provides brands with a toolkit to meet distinct consumer needs and price sensitivities head-on.

Also: Learn how Hershey is bolstering its go-to-market strategy

However, not all PPA strategies are created equal. Incremental PPA — such as basic upsizing or shrinkflation — may provide short-term relief but often fails to deliver sustainable growth. The real opportunity lies in transformational PPA, which involves building new pack formats and price points designed around unmet consumer occasions, emerging channels or differentiated brand experiences​.