With inflation rates as high as they have been in decades, it’s no surprise that the price of everyday goods is going up. But what’s worse than paying more for everything you need? Paying more for those same things and getting less when you buy them. This is also known as Shrinkflation, when consumer products get smaller in weight, size or quantity while their prices remain the same or even increase.
So why does Shrinkflation occur? Well there are a number of reasons but Shrinkflation occurs most commonly due to TWO main reasons – Increased Manufacturing Cost & Strong Level of Competition.
With the production cost of raw materials increasing and the lack of supply of these materials, this will cause the price of materials to increase. In response to the rising cost & market competition, rather than increasing the price of products, companies will simply offer a small packaging for the same price as it’s a way for them to maintain profit margins without raising prices.
What you can do to avoid Shrinkflation
Pay closer attention to the products that you’ve been purchasing all this while. Start taking note of their weight, not just the prices. Becoming a more net-weight conscious consumer is a great way to adapt to these Shrinkflated products. You can also try purchasing different brands of products that are cheaper. Another effective way is to simply download the Hargapedia App and get the lowest prices provided to you daily. You can get the best deals from groceries, lifestyle, travel and many more that we have curated from Lazada and Shopee everyday. The Hargapedia app also provides you with the latest deals & vouchers to help you save more when you purchase your groceries. You can get discounts and free shipping vouchers from different merchants in one app to help you save even more! Simply click the link below to download.
Some examples of Shrinkflation in groceries:
Checkout this Comic Strip on Shrinkflation done by the talented Mokumentary!