The Secret Behind Parle G's Stable Biscuit Pricing

The Secret Behind Parle G's Stable Biscuit Pricing​

Rising inflation

Inflation, or the general rise in prices of goods and services in an economy, can also prompt FMCG companies to raise their prices. This is because inflation reduces the value of money, and companies may need to adjust their prices to maintain their profit margins.

How its possible for Parle G

Parle G biscuits cost only 5 rupees. This was implemented in 2021; previously, since 1994, a small packet of Parle G Biscuits cost 4 rupees. When nearly all FMCG companies raised their prices due to rising inflation, how is it even possible for Parle G? what was the Secret Behind Parle G’s Stable Biscuit Pricing ?

In simple terms "Shrinkflation"

Shrinkflation strategy

shrinkflation is the practice of reducing the size or quantity of a product while the price of the product remains the same or slightly increases

Parle-G is a popular brand of biscuits in India that has been subject to shrinkflation in recent years. Shrinkflation in this case means that the size of the Parle-G biscuits has decreased over time, but the price has remained the same or even increased, resulting in consumers paying more for less product.

Example :

The Secret Behind Parle G's Stable Biscuit Pricing​

Some other brands

Shrinkflation is the strategy of Nestle of reducing the size of their chocolate bars while maintaining the price the same, such as KitKat and Aero. And Unilever has also been charged with shrinkflation since certain of its products, such soups and sauces, are decreasing smaller while their prices remain the same. Unilever is the maker of well-known brands like Knorr and Hellmann’s.


  • Companies may adjust the size of their products to maintain their profit margins, rather than raise prices and risk losing sales.
  • Shrinkflation can have a significant impact on consumers, particularly those with a fixed income, as they are effectively paying more for less product.
  • Shrinkflation can result in a sense of frustration and dissatisfaction among consumers, who may feel like they are getting less value for their money.