Australian consumers are increasingly noticing products becoming smaller while prices remain unchanged. Some 74 per cent said they had noticed products decrease in size or weight over the past year – equivalent to about 16.1 million people, according to Finder research.
Known as shrinkflation, the practice involves reducing a product’s size, weight or quantity without changing its price. Almost one-third of the 1010 respondents said they noticed it on almost every grocery shop.
Finder personal finance expert Sarah Megginson said cost-of-living pressures were making consumers pay closer attention to their grocery bills.
“Some brands are reducing the size, weight or quantity of items while leaving the price unchanged, which is a practice commonly known as ‘shrinkflation’,” she said. “It’s a more subtle way for businesses to claw back rising costs, because most shoppers are watching the price tag, not the fine print on the label.
“In some cases, it’s even worse than that – the product gets smaller, and the price goes up at the same time,” she said.
The practice is also affecting purchasing decisions. Some 40 per cent of Australians had switched to another or home-brand product after noticing a favourite item had decreased in size. A further 22 per cent had stopped buying certain products, while 37 per cent continued buying them despite getting less for their money.
However, awareness of shrinkflation varies among consumers. Some 19 per cent had not noticed shrinkflation, while 7 per cent did not pay attention to product sizes. Megginson said consumers were sharing examples online and questioning whether they were still getting value from their purchases.
“The best defence against ‘shrinkflation’ is checking the unit price, not just the shelf price,” she said.
Unit pricing allows consumers to compare costs per 100g or 100ml across brands and pack sizes. Finder also recommended comparing brands, checking specials and planning meals and shopping lists before visiting supermarkets.
Other ways to reduce grocery costs include buying food discounted near its use-by date and using leftovers to prepare other meals. Consumers can also cook in batches and freeze portions for later use to reduce food waste and spending.
