The impact of the US-Iran conflict is no longer limited to oil markets and geopolitical headlines. It is now finding its way into grocery stores and supermarket aisles, where consumers are switching to smaller packs of everyday items as monthly budgets are already facing pressure due to rising prices.Companies in categories like edible oil, biscuits, soaps, detergents, shampoos and staples are seeing a rise in sales of packs priced at Rs 5-20 compared to larger packs. Industry executives said sales of small packs are growing 4-10 per cent faster in April than in the January-March quarter, as consumers look for ways to manage rising expenses.The change comes at a time when FMCG manufacturers are already dealing with rising raw material and packaging costs, exacerbated by rising crude oil prices amid the Middle East chaos. While companies quoted by ET have already implemented price hikes of 4-10% across categories from April, many companies are now turning to grammar cuts in smaller packs to protect popular price points.In the AWL Agri business, demand for 200ml and 500ml edible oil packs has been strong in the quarter. The company has responded by adding dedicated production lines for these pack sizes.“Small pack sales have increased over the past few months, growing 8-10% this quarter compared to the previous quarter,” Angshu Malik, executive vice president, AWL Agri Business, told ET. “We have expanded the availability of such packs. This appears to be due to economic stress.”A similar trend is visible in the biscuit segment also. Parle Products said packs priced up to Rs 20 have seen a growth of 3-4 per cent more than larger packs in the last two months.According to Mayank Shah, vice-president, Parle Products, the growth is more noticeable in urban and semi-urban markets, as rural consumers have traditionally been more dependent on low-unit packs.“This could be linked to the influence of the geopolitical situation, but it is too early to establish any definite trends,” he said.Britannia Industries has also seen consumers moving towards lower priced products. Managing director Rakshit Hargway recently told analysts that packs priced at Rs 5 and Rs 10 were rising, while inflation pressures from the conflict in the Middle East were rising. These packs account for 60-65% of Britannia’s total sales.In the FMCG sector, small packs contribute between 30% to 60% of sales in most categories. At Dabur, they constitute about 30% of the company’s turnover.Dabur global chief executive Mohit Malhotra said the company has started reducing grammes in Rs 10 and Rs 20 packs as it is not possible to increase prices at those levels. The companies had earlier increased the prices by maintaining the existing prices after the GST cut last September.“There is ample scope available from the pre-GST period to the post-GST period. So this comes into play,” he told analysts recently.As consumers increasingly turn to lower-priced alternatives and companies look for ways to absorb rising costs, smaller packs are emerging as a key battleground for FMCG manufacturers in a challenging consumption environment.