Shrinkflation still prevalent in supermarkets

“Shrinkflation” is less common than it was a few years ago, but manufacturers continue to reduce package sizes without lowering prices proportionally. Last year, the Dutch Consumers’ Association found dozens of examples once again and is calling on policymakers to implement stricter regulations.

“Quietly” less content

Sandra Molenaar, director of the Consumers’ Association, particularly criticizes the lack of transparency. “If there’s more in a package, manufacturers shout it from the rooftops. But when they reduce the contents, they just quietly adjust the weight on the back,” she says.

“Shrinkflation” occurs when a manufacturer reduces the amount of product in a package while keeping the retail price the same, lowering it by a smaller amount, or even raising it. According to the Dutch Consumers’ Association, manufacturers often combine such a move with a new package design, making it less likely for consumers to notice the smaller quantity.

Manufacturers cite higher costs for raw materials, packaging, energy, and transportation as reasons for the smaller packages. Sometimes they also cite a revised recipe as an argument. But when it comes to the final retail price, manufacturers and supermarkets point the finger at each other: manufacturers claim that retailers set the store price, while supermarkets, in turn, cite the suggested retail prices provided by suppliers.

Call for a French approach

The organization wants policymakers to intervene. Molenaar advocates for a mandatory warning on the packaging or at the store shelf when the contents are reduced without a corresponding price reduction.

“That’s why we’re calling on policymakers. Require manufacturers to state more clearly on the packaging that there’s less inside. Or require supermarkets to post warnings at the shelf, as is legally mandated in France. There, the government does protect consumers against sneaky shrinkflation.”