What is Shrinkflation?

South Korean government has ordered the companies that if they are doing Shrinkflation then they have to mention it clearly on product label for 3 months. Otherwise, Government will impose penalty.

Shrinkflation is a sneaky way for manufacturers to raise prices without explicitly increasing the price tag.

• The Scam: Manufacturers reduce the quantity of a product while keeping the price the same (or maybe even raising it slightly). This means you get less for your money.
• Sneaky Strategy: The hope is that you won’t notice the smaller size, especially if the packaging remains similar. This makes it difficult to compare prices accurately between different purchases.

Examples of Shrinkflation:

• Fewer chips in the bag: You might notice your favorite potato chip bag seems somehow lighter. Maybe there’s more air inside, or the bag itself has shrunk a bit. This means you’re getting fewer chips for the same price.
• Shorter toilet paper rolls: The toilet paper roll might look the same size, but it’s actually shorter, offering fewer sheets. This translates to needing to buy replacements more often.
• Smaller cereal boxes: The familiar cereal box might have gotten a little slimmer, containing less cereal but still costing the same amount.

Impacts of Shrinkflation:

• Reduced Value: You’re essentially paying more per unit of the product (by weight or volume) because you’re getting less.
• Hidden Costs: Shrinkflation can strain your grocery budget as you need to buy more of the same product to get the same amount you used to.
• Challenges for Consumers: It requires more vigilance to compare prices effectively and avoid getting tricked by the seemingly unchanged price tags.

How to Spot Shrinkflation:

• Check the Unit Price: Pay attention to the price per unit (ounce, gram, etc.) listed on the shelf tag, not just the overall price. This allows for a more accurate price comparison between different brands or package sizes.
• Compare Package Sizes: Notice any changes in the size or weight of the product over time.
• Be Mindful of “Value Packs”: Sometimes larger packages might seem like a better deal, but do the math per unit price to ensure you’re actually getting more for your money.

By staying informed about shrinkflation tactics, you can be a more conscious shopper and make informed choices when it comes to your groceries and other consumer products.