What is shrinkflation?
Shrinkflation is a combination of the terms “shrink” and “inflation,” also known as downsizing. This is a merchandising strategy, often used in inflationary times, which involves reducing the quantity and/or size of a product without any accompanying reduction in the retail price.
Background
This practice, which has been around for ages, , is used by the industry to keep food prices low. They attempt to address consumer concerns, a widely studied topic that has shown that the average Canadian consumer chooses their food based on price. It is still the most important criterion today, according to a pan-Canadian survey carried out by the federal government in 2023.
💰 70 per cent of consumers are changing their eating habits
A 2023 cross-Canada survey conducted by the federal government shows that 70 per cent of consumers say they have changed their food purchasing habits in the past year due to rising food prices.
A study by the Harvard Business School revealed that consumers are more likely to notice a price increase than a change in the quantity of a product.
However, this subtle tactic, which is similar to skimpflation - that is, the use of cheaper and often inferior ingredients in the manufacturing process in order to save on production costs - no longer goes unnoticed when implemented in difficult economic times, and causes backlash among consumers. This lack of transparency is being criticized, because the changes seem to be deliberately engineered to fly under the consumer's radar. More and more cases are popping up in the grocery store, but the extent of the phenomenon is still difficult to gauge.
The situation is changing. The issue is receiving more and more media attention, and there are a number of initiatives pointing to these subtle reductions in packaging formats.
One such initiative is a blog published by Edgar Dworsky, a lawyer and co-founder of Consumer World, who reports weekly on the latest cases of shrinkage in the U.S. on his blog called mouseprint.org.
In Canada, a team from Radio-Canada investigated the subject and identified 300 products that have undergone a format reduction over the past 20 years.
Option consommateurs, has been investigating the problem for the past 10 years. These examples are evidence of a problematic situation that needs to change.
What's even more concerning is the fact that a number of experts, including Maryse Côté-Hamel, Professor of Consumer Sciences at Université Laval, Sylvie De Bellefeuille, a lawyer with Option Consommateurs, and others, claim that shrinkflation is changing the industry norm. It's the ripple effect at play: when one manufacturer adopts a tactic, competing brands soon follow suit. And once the consumer has accepted (or digested) the change, it becomes the normal or floor price.
How to spot it?
Generally speaking, packaged items are more likely to be subject to shrinkflation. The way they are packaged makes the shrinkage less apparent at first glance. Three different tactics have been observed:
The outer packaging is retained, but there are fewer contents inside: this becomes overpackaging, and the consumer eventually notices.
The packaging has been altered slightly. The new jar is more streamlined, but actually contains less sauce. In this example, the new format even gives the illusion that it contains more.
- A complete revamping of the packaging gives the impression of a new product, diverting attention away from the reduced quantity.
Examples of products that have been shrinkflated
Bacon, and block, grated or sliced cheeses, granola bars, potato chip bags, Vachon-type cakes, sweet and savoury cookies, yogurts, and numerous other products have seen their size reduced over the years.
Radio-Canada has compiled a database of some of the formats that have been scaled down. Some reductions have been minimal, others more glaring. Among the latter, we find cuts ranging from 20 per cent to 40 per cent of the original packaging! That's almost half... and all at the same price! Overall, the 300 products identified by Radio-Canada were downsized by an average of 14.3 per cent.
The proliferation of formats available on store shelves also creates confusion for consumers. A single brand may offer a number of similar products in the same box, but in different quantities (e.g. Kashi cereals). From brand to brand, the packaging may look identical, but not contain the same quantity (e.g. three different yogurt brands).
To successfully navigate this universe of marketing strategies, the average consumer has to get up early!
😳 71 per cent of packaged foods are ultra-processed
A good approach to boycott shrinkflation would be to simply avoid consuming ultra-processed foods.
Is this legal?
Currently, there are no laws clearly governing or preventing shrinkflation. The only legal obligation manufacturers have is to indicate the quantity, by weight or volume, on the front of the packaging.
When it comes to packaging, in theory, manufacturers are not allowed to sell a product in a container that is larger than necessary. In actual fact, companies justify changes to the packaging for all kinds of reasons, including to protect the food (e.g., pumping extra air into potato chip bags), to extend shelf life, to improve ergonomics, and other technical or aesthetic reasons.
Why should you be concerned?
The impact is primarily financial, since the consumer receives less for their money.
Shrinkflation increases the complexity of the food landscape, and this can lead to a prioritization of savings over the quality of the food.
Reduced sizing can change the tax bracket; we pay even more for the same product ... in a reduced amount!
Reducing the contents, but not the container, creates wasted space and overpackaging, which is inconsistent with the green transition.
Formats become less practical when it comes to cooking. Many recipes refer to common, easily accessible, grocery store formats (e.g. a container of cheese or a can of tomatoes).
Trust in the agri-food industry is being eroded by practices that lack transparency.
It’s possible to do things differently!
There are a number of companies that have opted for transparency by informing their customers of changes to their products. For example, Cadbury, Ben & Jerry's and Toblerone have posted messages on social media or on their websites explaining the changes they made - a somewhat rare approach, but one that needs to be adopted more widely.
In a 2013 report, Option Consommateur recommended that manufacturers be forced to indicate a format change on the face of their packaging for at least six months. Brazil had already adopted this measure ... in 2002! Similar initiatives have been implemented or are being planned in France, Germany, South Korea and Hungary. In Canada, François-Philippe Champagne, the Minister of Innovation, Science and Industry, is looking at the idea, but cannot move ahead without the provinces and the industry being on board. To be continued…
The practice is also being called out in the public arena, which is a step in the right direction. The Canadian government is also very concerned about the phenomenon, questioning the industry on its practices and holding it to account, in addition to funding research projects on the subject. As well, a number of organizations have been mandated to come up with possible solutions, among them Équiterre, which is exploring concrete solutions for making affordable, healthy and sustainable food choices.
Recipes to avoid shrinkflation
Make buying decisions based on the unit cost
Make buying decisions based on the unit cost, i. e. per 100g or per 100ml. According to Option Consommateurs, displaying prices based on unit is the most practical way to identify the most economical option. In Quebec, this information must be shown on the shelf label associated with the product, or directly on the product itself.
Buying whole, minimally packaged foods
Buying whole, minimally packaged foods is another smart way to deal with the quantity-price ratio. For example, buy apples instead of applesauce. In other words, avoid ultra-processed foods.
Be aware of when specific foods are in season
Another good practice would be to cook in-season foods in large quantities, in order to jar or freeze them.
Be a smart shopper
Develop the habit of reading and analyzing labels, in a market where formats have become more and more numerous. After all, you're making choices that directly affect your wallet, your health and that of the planet. It's time well spent! Compare the choices on offer, shop around for generic brands, and opt for larger sizes, which may offer a better unit price.
Change or rethink your grocery shopping habits
Changing brands or retailers could also save you a lot of money. Buy products that are on sale, check out the flyers and use the discount coupons offered.
Buy food in bulk
Buy food in bulk, so that you are able to control the quantity-price ratio and get just the amount you want. This avoids packaging, which is a plus for the planet!
Use apps
Use apps such as Foodhero, Flashfood, Too Good To Go, Sauvegarde, Improove or Marché SecondLife to save money and cut down on food waste.
Join social network specific interest groups.
The community that shares its tips and tricks can be a great support.
