Nestlé India has reduced the quantity of its flagship Maggi instant noodles across several pack sizes while retaining their maximum retail prices (MRPs). This move aimed at managing rising input costs without burdening consumers with direct price hikes.
The grammage cuts, ranging from 7% to 9%, come amid higher prices of palm oil and packaging materials, highlighting the growing cost pressures facing India's fast-moving consumer goods (FMCG) sector.
The strategy, often referred to as "shrinkflation," allows companies to preserve affordability by reducing product quantity instead of increasing prices.
Distributor checks indicate that Nestlé India has revised the weight of nearly its entire Maggi portfolio.
The ₹7 pack has been reduced from 35 grams to 32 grams, while the ₹10 pack now contains 48 grams, down from 52 grams. Similarly, the ₹15 pack has been cut from 75 grams to 70 grams.
Larger packs have also been resized. The ₹30 pack has been reduced from 150 grams to 140 grams, the ₹60 pack from 300 grams to 280 grams, the ₹90 pack from 450 grams to 420 grams, and the ₹120 pack from 600 grams to 560 grams. Except for the smallest SKU, most packs have seen a reduction of around 7%.
The move comes as FMCG manufacturers grapple with rising raw material costs, particularly for palm oil and packaging materials, which have put pressure on profit margins.
Instead of implementing outright price increases, companies are increasingly opting for smaller pack sizes to maintain key price points, especially in value-conscious segments where even modest price hikes can affect consumer demand.
Maggi continues to be one of Nestlé India's largest and most profitable brands. Industry estimates suggest the instant noodles franchise contributes nearly 25% of the company's revenue while generating EBITDA margins of around 25%, making it a critical earnings driver.
Nestlé India's decision to reduce Maggi pack sizes underscores the inflationary challenges confronting FMCG companies. By adopting shrinkflation instead of raising retail prices, the company aims to protect affordability while safeguarding margins. As commodity costs remain elevated, similar strategies could continue to shape pricing decisions across the consumer goods industry.
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Published on: Jul 1, 2026, 11:02 AM IST
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