Abstract:
Small-format packaging enables
consumers to purchase products with a lower
immediate cash outlay, however, the lower
transaction price may conceal a higher unit cost and
increased packaging intensity. This study examines
the economic and environmental implications of
small-format packaging in Sri Lanka using 125
market observations across eight consumer product
categories. Small and larger package sizes were
compared using unit prices, and the Plastic Poverty
Premium was calculated as the percentage
difference between their unit prices. Package-size
ratios and the additional expenditure required to
obtain equivalent quantities through small
packages were also estimated. A positive Poverty
Premium was observed in 75.2% of observations,
with a mean of 24.76% and a median of 12.50%.
Premiums ranged from −48.81% to 425.00%,
indicating substantial variation among products.
Beverages recorded the highest category mean
premium, whereas snacks showed a negative mean
premium. The mean package-size ratio was 7.39,
indicating that larger packages generally contained
substantially more product than corresponding
small formats. The correlation between package-
size ratio and Poverty Premium was very weak (r =
0.008). On average, consumers would incur an
additional Rs. 213.06 to obtain equivalent quantities
through small packages. Although packaging
weight was not measured, purchasing equivalent
quantities through multiple small packages
increases the number of packaging units entering
the post-consumer waste stream. The findings
indicate that small-format packages may provide
immediate affordability while imposing higher unit
costs and potentially increasing packaging intensity.
Sustainable packaging strategies should therefore
address affordability, unit pricing and packaging-
waste reduction together.
