Shrinkflation: to control costs, food companies shrinking packaging
Rough estimates suggest that anywhere from 15 to 20 per cent of packaged food products in Canada have shrunk over the last five years. Consumers find this irritating, but given the economics of the food industry, the industry can hardly be blamed.
Most consumers worry about the cost of food. We constantly look for bargains and the food industry knows it. According to a recent survey by Dalhousie University, almost 60 per cent of all Canadian consumers say price is one of the top three criteria when deciding what to buy at the grocery store. Grocers play around with prices to keep us on our toes.
Pricing in the food processing sector is intricate. Ingredients, energy costs, wages and so forth can weigh heavily on food manufacturers as they try to cultivate relationships with grocers and retain market shares.
For decades, to keep price points low, the shrinking package strategy has been part of the food industry. This can be seen in items such as chips, ice cream, cookies, pasta and chocolate bars. Some of us notice and have seen media reports on the issue in recent years. But now packages are shrinking even faster. The tactic is so widespread that some have even given it a name: shrinkflation.