Shrinkflation is causing widespread concern among shoppers in today’s economic landscape, with nearly three quarters becoming more aware of its effects.
- Research by Barclays highlights that consumers have noticed shrinking product sizes and increasing prices, particularly in chocolate, crisps, and biscuits.
- Some shoppers are adapting by switching to brands maintaining consistent product sizes despite price hikes.
- The reduction in product sizes, such as McVitie’s Digestives and Penguin biscuits, is linked to increased commodity costs due to external factors like geopolitical events.
- A significant percentage of consumers are altering shopping habits, opting for bulk purchases or sourcing from multiple stores to mitigate financial strain.
Shrinkflation, a phenomenon where products diminish in size while prices continue to rise, is drawing significant attention from consumers, with 73% reporting increased awareness according to recent data by Barclays. This trend is especially noticeable in common consumer goods such as chocolate, crisps, and biscuits. As a result, consumers are consciously gravitating towards brands that have not reduced their product sizes, with 21% of shoppers making this switch.
In an illustrative example, McVitie’s Digestives have experienced a reduction from 400g to 360g per standard pack, coupled with a price increment of 20p to £1.80. Similarly, Penguin biscuits have seen their multi-packs downsized from eight bars to seven, with prices elevating from £1.25 to £1.50, despite the reduced quantity.
The root of this so-called shrinkflation lies in external economic pressures, notably Russia’s invasion of Ukraine, which has heightened the cost of essential commodities like wheat and vegetable oils, integral to manufacturing popular British biscuits. This has driven brands to adjust product offerings and pricing structures accordingly.
Hellmann’s mayonnaise is another product impacted, with jars being reduced from 800g to 600g, marking a 25% decrease in size. Despite this, prices have surged by 14% to £3.75, exemplifying the economic pressures transmitted to end consumers.
Consumers are responding to these changes with altered purchasing behaviors. With card spending in supermarkets declining to 5.2% in July from 9.8% in June, a notable 35% of consumers are buying in bulk, while 41% are shopping across multiple stores, striving for savings amidst rising food costs.
Shrinkflation continues to shape consumer habits as they navigate economic challenges, balancing cost and quantity.
