Sachetification: Economy Sizing in Emerging Markets

In markets like Nigeria, the Philippines, and other parts of the Global South, there is a product strategy that caters to the needs of low-income consumers, albeit fuelling an environmental crisis. This phenomenon is known as sachetification: the sale of single-use, low-cost product packages that make everyday goods more accessible to low-income consumers.

Making Poverty Profitable

Fast-Moving Consumer Goods (FMCG) companies introduced sachets to unlock new customer segments. For individuals earning a daily wage, affording full-sized products often means going without basic needs or saving over multiple days. Sachets offer a workaround, providing smaller portions of cooking oil, shampoo, detergent, and even pharmaceuticals at extremely low unit prices.

It’s a strategy rooted in accessibility. A 45 ml sachet of cooking oil at ₦300 may seem economical, but when multiplied, it becomes over 22% more expensive per litre than buying the full-sized version. Still, for many consumers, sachets represent the only feasible option.

The Hidden Cost: A Plastic Crisis

While sachets offer short-term affordability, they impose a long-term cost, one disproportionately paid by the poor. Most sachets are made from multilayer plastics (like PET combined with aluminium), which are nearly impossible to recycle economically.

The consequences are visible everywhere in these markets:

• Toxic air from sachet burning, releasing carcinogens into densely populated areas.

• Flooded cities due to clogged drainage systems in Lagos, Manila, and Accra.

• Dying rivers and fisheries choked by plastic, especially in regions like Nigeria’s Niger Delta where plastic waste makes up 60% of riverine debris.

This is not just an environmental issue, it's a public health and urban infrastructure crisis, intricately linked to poverty and systemic neglect.

“A poor man doesn’t really care about the depletion of the ozone layer or the danger of single-use plastic. He is too preoccupied with surviving.”

Sachet Visibility

Beyond accessibility, sachets offer massive visibility and branding potential. They're sold in high-volume, high-footfall retail points, such as kiosks, market stalls, and roadside tables, turning everyday transactions into ongoing brand reinforcement. For marketers, this means millions of daily impressions in places traditional advertising can’t reach. It also boosts product trial intent as consumers are more willing to try out new products if they come in smaller and affordable sizes.

Packaging, Priorities and Profits

By breaking products into affordable, single-use formats, brands open the door to price-sensitive consumers while maintaining, and sometimes even increasing revenue. A consumer who may never afford a ₦4,000 bottle of oil can still engage with the brand daily through a ₦300 sachet and, in many cases pays more cumulatively over time.

While environmental concerns around single-use plastics remain valid, the reality is clear: in many emerging markets, sachets are the most viable route to scale. Until infrastructure and sustainable packaging solutions catch up, sachetification continues to deliver unmatched ROI and customer reach.

For more insights on marketing strategy and consumer behaviour in Africa and beyond, follow us at olewaadvisory.com.