Almost three quarters of shoppers are acutely aware of shrinkflation, a trend where product sizes are reduced while prices increase.
- Barclays’ recent research highlights that items like chocolates, crisps, and biscuits are most affected by shrinkflation.
- Consumers are responding by shifting to brands retaining product sizes, with 21% making this change.
- Factors such as the conflict in Ukraine have exacerbated costs for essential commodities, impacting production costs.
- Despite shrinking sizes, prices for numerous goods, including McVitie’s Digestives and Hellmann’s mayonnaise, continue to rise.
Almost three quarters of shoppers are acutely aware of ‘shrinkflation’, a phenomenon where product sizes decrease as prices rise, indicating heightened consumer consciousness. According to research conducted by Barclays, this trend is particularly noticeable in everyday items such as chocolates, crisps, and biscuits.
To combat shrinkflation, a notable 21% of consumers have opted to switch brands in favour of those maintaining original product sizes, reflecting a shift in purchasing behaviour driven by value retention.
The Russian invasion of Ukraine has been pinpointed as a significant factor contributing to increased production costs due to heightened prices of commodity crops like wheat and vegetable oils, which are integral to the manufacturing of popular British snacks.
Specific examples highlight the impact of shrinkflation: McVitie’s Digestives have reduced from 400g to 360g, with a price increase from £1.60 to £1.80, and Penguin biscuit packs have decreased from eight bars to seven, yet prices jumped from £1.25 to £1.50. Additionally, Hellmann’s mayonnaise jars have seen a reduction from 800g to 600g, notwithstanding a 14% price hike to £3.75.
A broader consumer response to rising prices includes behaviours such as bulk purchasing, practised by 35% of customers, and shopping across multiple outlets, noted by 41%, as efforts to mitigate financial strain on households.
Shrinkflation remains a pressing concern for consumers as prices rise amid global economic pressures.