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SHRINKFLATION AND SKIMPFLATION
By our African Marketing Confederation News Team | 2024
UK study finds a rapid rise in ‘shrinkflation’ and ‘skimpflation’ as manufacturers struggle with rising costs and lower shopper spending.
An investigation by a UK consumer-rights organisation has emphasised the extent of ‘shrinkflation’ and ‘skimpflation’ in supermarket products, as shoppers and manufacturers battle rising raw material costs, high inflation, and reduced spending power.
Photo Credit: Jack Sparrow. Pexels
‘Shrinkflation’ is when pack sizes are made smaller, but the cost is not reduced. ‘Skimpflation’ is when expensive ingredients in a product are reduced, but the price consumers pay remains similar, or increases.
The research, conducted by the organisation Which?, finds that, while some popular products are subtly decreasing either in size or quality, the same can’t be said for their prices – which means shoppers are inadvertently paying more for less.
“Supermarkets and manufacturers must be more upfront by making sure changes to popular products are clear, and by ensuring that unit pricing is prominent, legible and consistent in-store and online so that shoppers can easily compare prices across different brands and pack sizes,” says Ele Clark, the Retail Editor at Which?
Listerine Fresh Burst mouthwash is among the products highlighted by Which?. It calls the product “among the worst examples of shrinkflation”, with the size of a bottle cut by 17%, from 600ml to 500ml. At the same time, the prize rose in some stores, and the researchers calculate that the price per 100ml went up 46%.
Increases in raw materials and production costs
In a statement published in the London-based The Guardian newspaper, a spokesperson for the manufacturer of Listerine says: “Like many other manufacturers, we are faced with cost increases, especially in raw material and production costs, and have had to adjust our prices. The current recommended retail price for Listerine reflects these cost increases and our ongoing investment in the product.”
Other examples highlighted by the research include sausages with less pork, beef lasagne with less beef, less chicken in chicken enchiladas, and reduced butter content in spreadable butter.
According to Which?, retailers argue that reducing the size of a product, instead of increasing its price, has helped consumers. But three-quarters of shoppers believe manufacturers and retailers are not being transparent about the process.
The British Retail Consortium, which represents the country’s retailers, says in its own statement that the prices and sizes of all products are clearly labelled so that customers can make informed decisions.
“Given the challenges facing households from the cost-of-living squeeze, retailers are solely focused to find ways to limit rising prices for customers against the rising cost of production, while maintaining the excellent quality of products,” the Consortium’s spokesperson states.
In a 2022 study of shrinkflation by two Australian universities, the researchers noted that “the sneaky strategy of reducing pack sizes shows the strength of consumers’ cognitive bias towards focusing on price, no matter what”.

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