Shrinkflation: The Silent Shift in Everyday Staples
Households are facing an unexpected squeeze on their grocery budgets as everyday staples begin to shrink in size while prices remain the same. This phenomenon, dubbed "shrinkflation," is being driven by manufacturers' efforts to reduce costs without affecting profit margins.
From toothpaste to coffee, and even heartburn medicine, a range of popular products have been quietly downsized. The culprit? Rising raw material costs, which are driving up production expenses for companies like Nestle and Haleon Great Britain and Ireland. For instance, Aquafresh complete care original toothpaste went from 100ml to just 75ml at Tesco, Sainsbury's, and Ocado, with the price remaining unchanged.
Gaviscon heartburn liquid has also suffered a similar fate, shrinking from 600ml to 500ml while retaining its hefty £14 price tag – equivalent to a 20% increase per 100ml. Meanwhile, Nescafé instant coffee was reduced from 200g to 190g at Tesco, Morrisons, and Asda, with prices rising by around 5% per 100g.
Chocolate has not been spared either, as Quality Street tubs were downsized from 600g to 550g, while Club and Penguin biscuits have seen their cocoa content reduced significantly. This shift is largely due to the impact of rising cocoa prices on manufacturers' bottom lines.
Consumer watchdog Which? has called for greater transparency in product changes, citing the need for shoppers to be able to make informed choices about what they buy. "Households are already under immense financial pressure," says Reena Sewraz, retail editor at the watchdog. "Supermarkets must be more upfront about their prices so that it's easy to see what the best value is."
Recent data suggests that shop price inflation has begun to ease, with a 1% decrease in October compared to 1.4% in September. This drop was largely driven by packaged and tinned foods, where prices fell by 2.9%, while non-food prices decreased by 0.4%.
While the news may be welcome for some, it's unlikely to alleviate pressure on household budgets entirely. As Reena Sewraz notes, "Shoppers must be able to compare costs across different brands and sizes of packaging" – a task that becomes increasingly difficult when product sizes are reduced without corresponding price cuts.
Households are facing an unexpected squeeze on their grocery budgets as everyday staples begin to shrink in size while prices remain the same. This phenomenon, dubbed "shrinkflation," is being driven by manufacturers' efforts to reduce costs without affecting profit margins.
From toothpaste to coffee, and even heartburn medicine, a range of popular products have been quietly downsized. The culprit? Rising raw material costs, which are driving up production expenses for companies like Nestle and Haleon Great Britain and Ireland. For instance, Aquafresh complete care original toothpaste went from 100ml to just 75ml at Tesco, Sainsbury's, and Ocado, with the price remaining unchanged.
Gaviscon heartburn liquid has also suffered a similar fate, shrinking from 600ml to 500ml while retaining its hefty £14 price tag – equivalent to a 20% increase per 100ml. Meanwhile, Nescafé instant coffee was reduced from 200g to 190g at Tesco, Morrisons, and Asda, with prices rising by around 5% per 100g.
Chocolate has not been spared either, as Quality Street tubs were downsized from 600g to 550g, while Club and Penguin biscuits have seen their cocoa content reduced significantly. This shift is largely due to the impact of rising cocoa prices on manufacturers' bottom lines.
Consumer watchdog Which? has called for greater transparency in product changes, citing the need for shoppers to be able to make informed choices about what they buy. "Households are already under immense financial pressure," says Reena Sewraz, retail editor at the watchdog. "Supermarkets must be more upfront about their prices so that it's easy to see what the best value is."
Recent data suggests that shop price inflation has begun to ease, with a 1% decrease in October compared to 1.4% in September. This drop was largely driven by packaged and tinned foods, where prices fell by 2.9%, while non-food prices decreased by 0.4%.
While the news may be welcome for some, it's unlikely to alleviate pressure on household budgets entirely. As Reena Sewraz notes, "Shoppers must be able to compare costs across different brands and sizes of packaging" – a task that becomes increasingly difficult when product sizes are reduced without corresponding price cuts.