Ben O'Connell
How dare companies charge us more for less!? The tactic, known as shrinkflation, allows companies to charge more without changing the product’s price. Instead, they decrease the size of the original product.
Size reductions to items are typically small and gradual, so there’s often minimal visible change, so shoppers are unlikely to notice they’re actually paying more for what they’re buying.
Here a myriad of products have shrinkflated, from chocolate bars, crackers, and biscuits to jam and pet food (see Arnotts, although they insist the size of Tim Tams hasn’t changed). Unit pricing is a good way shoppers can ensure they’ve got the best bang for their buck. In particular, Snickers chocolate bars were reduced by 6g and now weigh 44g instead of 50g, and Peckish baked rice crackers went from 100g to 90g.
Unit pricing makes it easier to determine the real cost of grocery items, the price per litre, gram, or item of what you want. These prices are found on supermarket shelf labels and you can sort by lowest unit price when online grocery shopping.
Shrinkflation, as the name suggests, occurs during times of high inflation when brands are paying more for raw materials and production. Companies may employ shrinkflation as a temporary measure to reduce costs and maintain profit margins without directly raising prices, which risks alienating consumers.
Shrinkflation can erode consumer trust if customers discover that their favourite brands have been reducing product sizes. This stealthy form of price increase can damage the relationship between brands and their loyal customers, per the Michigan Journal of Economics. As such, it’s essential for consumers to remain aware of product quantities and sizes to make informed purchasing decisions.
Internationally, high inflation fuelled by pandemic supply-chain challenges, rising labour costs, and wars worldwide means that grocery and product prices are rising. This “shrinkflation” phenomenon is nothing new.
Although shrinkflation is generally overlooked by consumers, it has a significant influence on their behaviour. If devoted clients discover that their favourite firms have been reducing the size of their products, it is sufficient to drive them away. Shrinkflation can quickly erode consumer confidence and destroy a brand’s connection with loyal customers.
As for customer strategies to curb the impact of shrinkflation, the first is buying in bulk. Buying whole foods instead of pre-packaged products works, too, as these items are typically not as susceptible to shrinkflation.