Shrinkflation: Which food items are getting smaller?
Shrink inflation nation! Two-thirds of shoppers say their favorite foods and drinks are shrinking… and these are the items being downsized the most
- Barclaycard found that 65% of shoppers have noticed some food shrinkage
- Snackers could be hardest hit if items like chips and chocolate are cut back
- What’s shrinking in your shopping cart? E: helen.kirrane@thisismoney.co.uk
Grocery spending is at its highest level in two years, boosted by food price inflation, which rose 19.1 percent in the year to April.
But customers aren’t just paying more for the same old products when they go to the grocery store — in some cases, they’re paying more for less.
This is according to the latest consumer spending report from Barclays two-thirds of shoppers have noticed that products they buy are sold in smaller packages or portion sizes, but cost the same or more than they used to.
This is known as ‘shrinkage inflation’ – and the majority of consumers (83 percent) say they are concerned about it.
Snack lovers seem to be hardest hit, as the products customers say shrink the most are chocolate (50 percent), potato chips (40 percent), packets of cookies (39 percent), and snack bars (35 percent).
Shrinking before your eyes? Shrinkage inflation is when products are sold in smaller packages or portion sizes, yet cost the same or more than they used to
A fifth of consumers said they were moving away from products that have been scaled down by manufacturers, while some said they had gone bulk to get more bang for their buck.
Meanwhile, more than 63 percent said they were looking for ways to lower the cost of their weekly groceries.
Two-fifths (41 percent) of these price-conscious Britons use vouchers or loyalty points to earn money when shopping, and more than a quarter (27 percent) buy more frozen food to reduce waste.
Commenting on the data, Esme Harwood, director at Barclays, said: ‘Consumers are still paying close attention to their daily spending and we are seeing growing concerns about ‘shrinkage inflation’ in the weekly shop.
“Many are having to forego discretionary purchases to offset rising food prices, with clothing and restaurants most affected.
As Silvia Ardagna, head of European economic research at Barclays, said: ‘While the latest headlines show that inflation has fallen on the back of lower energy prices, prices of core services and goods remain stubbornly high and households’ real disposable income continues to fall. to limit. expenditure.’
What else do Britons spend on?
Card spending grew just 3.6 percent year-on-year in May, well below the current inflation rate of 8.7 percent, according to Barclays.
Spending on non-essential items rose 3.0 percent, which the company said was due to consumers cutting back on luxuries to help them manage higher household bills.
The higher cost of living and the changeable weather in May also meant that the British stopped buying new summer clothes.
As a result, clothing saw its biggest drop in more than two years in May (-5.1 percent), while department stores (1.9 percent) saw the smallest increase in sales spending since November 2022.
A quarter (26 percent) of shoppers said they’re buying less new summer clothes because of the rising cost of living, and more than a third (35 percent) plan to re-wear more of their old summer clothes for the same reason.
Discount stores fared better, with spending up 5 percent, another sign that consumers continue to seek value wherever possible.