Shrinkflation is less common than it was several years ago. However, this form of price increase has not disappeared. Over the past year, the Dutch Consumers Association found dozens of new examples in supermarkets. Manufacturers reduce the amount of product inside the package. The retail price does not fall proportionately, remains unchanged, or even increases. Sometimes the packaging changes, but the smaller quantity is not always made clear. For other products, the packaging remains virtually identical.
In these cases, only the quantity stated on the back changes. The size, label, shape, and overall appearance remain largely unchanged. The Dutch Consumers Association cites Blue Band Vloeibaar and Head & Shoulders as examples.
Some manufacturers reduced the quantity several times. M&M’s packages went from 440 to 400 grams. The quantity was then reduced further to 363 grams. According to the Dutch Consumers Association, the price did not fall accordingly. After the latest reduction, consumers pay 10 percent more per 100 grams.
The Dutch Consumers Association is calling on policymakers to address shrinkflation. Manufacturers should clearly state on the packaging when a product contains less. Supermarkets could also warn consumers in stores.
In France, such warnings are required by law. Director Sandra Molenaar considers the current communication insufficiently clear: “When a package contains more, manufacturers shout it from the rooftops. But when they reduce the quantity, they quietly change only the quantity listed on the back.”
Manufacturers cite higher packaging and raw material costs. According to them, rising energy and transportation costs also play a role. In some cases, they point to an improved recipe.
Manufacturers also point to supermarkets because they set retail prices. Supermarkets, in turn, say they use manufacturers’ recommended retail prices as their guide.
Source: Consumentenbond