What's happened
Major brands are quietly reducing product sizes and ingredients amid rising costs, with examples including toothpaste, coffee, and chocolates. Consumers face higher per-unit prices and less transparency, prompting calls for clearer labelling and better value comparison. The trend reflects ongoing inflation pressures in the UK food sector.
What's behind the headline?
Shrinkflation is increasingly common as brands respond to inflationary pressures. The practice involves reducing product sizes or downgrading ingredients while maintaining or slightly increasing prices, which can deceive consumers. For example, Aquafresh toothpaste's volume dropped from 100ml to 75ml at a higher per-unit cost, and chocolates like Quality Street now contain less weight for a higher price. This trend is driven by rising costs for raw materials such as cocoa, dairy, and energy, which manufacturers are trying to absorb without losing profit. However, the lack of clear labelling and unit pricing makes it difficult for consumers to compare value effectively. Retailers and brands are urged to improve transparency, especially as household budgets tighten. The recent slowdown in shop price inflation to 1% suggests some relief, but the core issue of product downgrades persists, impacting consumer trust and perceived value.
What the papers say
The Guardian reports that brands like Aquafresh and Gaviscon have increased prices while shrinking sizes, with Aquafresh's price rising by 105% per 100ml. The Independent highlights similar examples, including Sainsbury’s Scottish Oats shrinking from 1kg to 500g and chocolate products like Quality Street reducing from 600g to 550g, with prices rising accordingly. Both articles emphasize the lack of transparency and the need for clearer unit pricing. Consumer watchdog Which? criticizes brands for making these changes quietly, especially as households face financial pressures with rising food bills and upcoming holiday expenses. Mondelez and Nestlé representatives acknowledge higher input costs but justify size reductions as a last resort to maintain product quality. The articles collectively reveal a widespread trend of shrinkflation across multiple product categories, driven by inflation but often hidden from consumers, raising concerns about fairness and transparency in retail.
How we got here
Rising costs for ingredients, energy, and transportation have driven manufacturers to cut back on product sizes and ingredients. This practice, known as shrinkflation, has become more prevalent as companies seek to manage profit margins without raising retail prices visibly. Consumer watchdogs have highlighted numerous examples, raising concerns about transparency and value for money.
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