Brands have been quietly shrinking the size of some products for a while but consumers are getting wise to this moneysaving trick and voting with their wallets.
Cash strapped British consumers are switching away from products which have been downsized by manufacturers in favour of buying products in bulk which offer better value for money.
Raising prices while simultaneously shrinking products to offset higher inflation could cost brands more in the long term, suggests a new survey from YouGov that found consumers turned off by shrinkflation are turning to private label.
Consumers are contending with inflation by changing their food buying behavior, and the packaged food industry should focus their efforts on keeping customers without sacrificing medium- and long-term profits, according to consultants and market researchers.
Many packaged food and beverage manufacturers that have trimmed serving sizes without lowering cost in recent years to mitigate inflation have tried to do so in stealth mode for fear of losing value-seeking shoppers, but new research suggests if they...