New research suggests that cash-strapped consumers striving to get value for money are growing increasingly concerned about the food industry adopting shrinkflation to offset rising costs.
In a survey conducted by Barclays, 88% of people remained concerned about rising food prices. Meanwhile, 65% of shoppers said they had noticed that some products are now being sold in smaller packs or portion sizes, yet cost the same or more than they used to. And the majority (83%) stated that they were concerned about the impact of this growing shrinkflation trend.
The products most frequently cited as being impacted by shrinkflation were chocolate (50%), crisps (40%), packs of biscuits (39%) and snack bars (35%). In response, a fifth of consumers said they were switching away from products that have been downsized by manufacturers in favour of buying products in bulk which offer better value for money.
Meanwhile, 63% stated that they had been looking for ways to reduce the cost of their weekly grocery shopping. Two-fifths are using vouchers or loyalty points to get money off, and 27% are buying more frozen food to minimise waste.
Esme Harwood, Director at Barclays, commented: “Consumers are still paying close attention to their everyday spending, and we are seeing growing concerns around ‘shrinkflation’ in the weekly shop.
“Many are having to forgo discretionary purchases to offset rising food prices, with clothing and restaurants most impacted.”
NAM Implications:
- However well expressed, or reliance on letter-of-law justification…
- …a shrink-flator is perceived as short-changing their most loyal consumers.
- Consumers are patently voting with their feet.
- But suppliers should be even more concerned about the fallaway consumers’ tell-a-friend reaction…
- …diluting years invested in the brand.
