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August 12, 2026

Packaging Strategies for Brands Amid Rising Costs & Changing Consumer Behavior

Consumers are economically vigilant today. Here are four ways you can use packaging as a strategic lever to win their attention, confidence, and, ultimately, the sale.

From grocery aisles to boardrooms, consumers and manufacturers have spent the past year navigating persistent price increases, inflation concerns, and ongoing economic uncertainty. Confidence has fluctuated, costs have remained under pressure, and both brands and shoppers have been forced to adapt in real time. Yet despite the uncertainty, consumers continue spending — just not in the ways many brands expected.

We spent the past year studying these shifts through custom consumer research, combined with industry, economic, and academic sources, to better understand what is driving today’s consumer behavior and what it meansfor consumer packaged goods (CPG) brands.

Consumers aren’t tuning out — they’re paying closer attention than ever.

The short answer is this: consumers aren’t tuning out —they’re paying closer attention than ever. Their expectations are evolving, their shopping habits are changing, and those shifts will continue to reshape how CPG companies design, price, package, and position their products well into 2027.

Consumer behavior insight: Consumers are more engaged than ever

If the past few years were defined by economic fatigue, today is defined by economic vigilance.

Our research found that more than 90% of Gen Z and Gen X consumers say they closely follow the economy, politics, and world events —insights that should inform your packaging strategies.

More importantly, they’re paying close attention to their own household finances. Rising grocery bills, higher everyday expenses, and concerns about inflation have become regular topics of conversation.

Consumers consistently cited the increasing cost of food and household goods as one of their biggest concerns. Three-quarters expect groceryprices to continue rising over the coming year, and that expectation alone isinfluencing purchasing decisions.

As a result, shoppers are becoming:

  • More price conscious;
  • Less loyal to established brands;
  • More likely to question whether premium products justify their price;
  • More interested in transparency around ingredients, sourcing, sustainability, and country of origin.

Today’s consumers are making more deliberate purchasingdecisions than they were just a few years ago.

Consumer behavior insight: Spending isn’t collapsing — It’sbeing reorganized

Consumer confidence remains historically low, yet spending continues.

Rather than pulling back altogether, consumers are reallocating where and how they spend. They’re stretching every dollar, evaluating value more carefully, and making intentional trade-offs across categories.

Across generations, several patterns continue to emerge:

  • Consumers are trading down to lower-cost brands more frequently, particularly in commodity categories, while actively using promotions, coupons, and loyalty offers.
  • Value-oriented retailers continue gaining market share across nearly every income bracket. This includes wholesale clubs, dollar stores, discount chains, and private label brands.
  • Small indulgences remain surprisingly resilient. Gen Z and Millennials continue rewarding themselves with affordable luxuries, from premium coffee to personal care products, even while cutting back elsewhere.
  • Major discretionary purchases are more likely to be postponed until consumers feel greater financial confidence. This could be furniture, travel, and home improvements.
  • Side hustles, loyalty programs, rewards, and cashback platforms have become mainstream tools for helping households manage rising costs. Nearly two in five consumers now supplement their income outside their primary job, while roughly half actively use rewards or cashback programs.

Consumer behavior insight: Economic uncertainty is becomingthe new normal

Whether driven by inflation, shifting consumer confidence,supply chain disruptions, changing regulations, or broader economic uncertainty, volatility has become part of the business environment.

Consumers are adapting remarkably quickly. They’re reorganizing priorities, seeking greater value, embracing discount channels, and remaining willing to switch brands whenever they believe they’re getting abetter deal.

For CPG companies, this isn’t a temporary adjustment. It represents a lasting behavioral shift.

Brands that understand these new decision-making patterns —and respond accordingly — will be better positioned to maintain market share as consumer expectations continue evolving.

So, what should CPG brands do next?

Based on our research and conversations with industry partners, several priorities stand out.

Packaging Strategy #1: Design for clarity, value, and trust.

Packaging has only seconds to communicate value. If consumers can’t immediately recognize what makes your product worth buying, they’ll likely move on.

Packaging Strategy #2: Deliver affordable joy.

Small indulgences continue to outperform larger discretionary purchases. Seasonal offerings, value bundles, limited editions,and discovery-driven products provide consumers with emotional rewards that still fit within tighter budgets.

Packaging Strategy #3: Treat compliance as a competitive advantage.

Regulatory expectations continue to evolve globally. Companies that proactively adapt packaging and labeling can strengthen credibility with consumers while improving operational efficiency.

Packaging Strategy #4: Re-evaluate materials through a costand carbon lens.

Ongoing cost pressures, evolving supplier economics, and sustainability goals make this an ideal time to revisit material choices, lightweighting initiatives, packaging redesigns, and broader supply chain efficiencies.

The bottom line: Align packaging strategies with consumer behavior

The consumer landscape isn’t weakening — it’s transforming.

People are still spending, but they’re spending differently. They’re more informed, more intentional, and more willing to compare brands than ever before. Every purchase reflects a careful evaluation of value, trust,quality, and affordability.

In this environment, packaging is no longer simply a production expense. It has become a strategic business tool that influences purchasing decisions, reinforces brand value, and builds consumer confidence.

The question isn’t whether consumer expectations will continue evolving — they will. The real question is whether your brand can evolve quickly enough to meet today’s shoppers where they are: value-conscious, highly informed, and increasingly willing to switch brands when they don’t see a compelling reason to stay.

John Broderick, Vice President of Strategy & Insights, WovenWorks

August 12, 2026

Originally published in Packaging Digest.

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