Size matters: why shrinkflation is reducing the sizes of products, not the prices

Have you noticed you’re getting more air and fewer crisps in a packet? 

Or that your breakfast cereal doesn’t stretch as far as it used to? 

No, it’s not your imagination. Your shopping really has been getting smaller. 

Shrinkflation is the name for when manufacturers reduce the size of a product without reducing the price. 

It’s much less obvious than raising the price so it’s popular with manufacturers who need to cut their costs or boost their profits without alienating shoppers. 

It’s most common with food, according to the latest research from the Office for National Statistics. 

But it’s not just at the supermarket; everything from clothing to furniture can have their materials cut back so the production cost shrinks. 

More than 200 products were hit by ‘shrinkflation’ in the two years to June 2017, according to figures from the Office of National Statistics (ONS). 

The shrinkflation phenomenon leaves shoppers out of pocket because they end up paying the same amount of money for a product but have less to show for it. 

So what can you make sure you’re getting your money’s worth? 

Industry insider 

So why does it happen? 

Well, it’s very easy to assume that products getting smaller without getting cheaper is very simply a cunning way to wring more money out of customers but that’s not always the case. 

We asked a former supermarket buyer how common shrinkflation is. 

They didn’t want to give their name while they lifted the lid on industry secrets, but they said it’s not necessarily about increasing profits for the producer. 

Sometimes a product could shrink because of guidance on the amount of sugar a single portion can contain, for example. 

Or the availability of ingredients can play a role; good quality chocolate may be shrinking because cocoa yields are falling and demand is rising, which pushes up prices. 

And sometimes the drop in value can be even harder to spot because shrinkflation isn’t just about smaller packets for the same price. The quality of the ingredients can change too. 

“Product engineering was what we called it,” the insider explained. 

“It might be about reducing the overall weight of the product or it might be changing the ingredients so they are slightly cheaper - maybe margarine instead of butter or agreeing a higher water content. 

“There was this constant war to reduce prices or to keep them low no matter what was happening to the cost of the ingredients. 

“I’ve never seen shrinkflation actually outlined in a strategy but that doesn’t mean it doesn’t happen. If it is a strategy, it would be a very hush-hush one, right at the top.” 

Don’t forget that while you may think that this article is brilliant, it is intended for information purposes only and should not be mistaken for financial advice or recommendations.