Shrinkflation: Hidden price increases in the supermarket – this is what consumers need to know

Shrinkflation: Hidden price increases in the supermarket – this is what consumers need to know

According to a report from www.nw.de,

Many consumers are currently experiencing an increase in prices at the supermarket checkout. But there is another form of price increase, called “shrinkflation”. Manufacturers simply reduce the content of their products without adjusting the price. The Hamburg consumer advice center has uncovered more deceptive packages than ever before for 2023. By the end of the year, 104 products had been added to the deceptive packaging list, compared to 76 in 2022 and just 47 in 2021.

The effects of such “hidden price increases” are often difficult for consumers to recognize. Companies like Andechser, Ferrero, Milka and even the Bielefeld company Oetker have used such practices by reducing the content of their products but keeping the price stable.

The Hamburg consumer advice center is calling on consumers to take part in the vote on “Deceit Packaging 2023”. They can choose the product with the boldest hidden price increase from a list of five candidates. The nominated products, including Yoghurt Gums from Katjes and Tuc Bake Rolls from Mondelez, show price increases of up to 127 percent due to reduced content quantities.

In response to these developments, the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) published a key points paper in which it is demanded that if the contents of a product are reduced, the packaging of a product should also shrink. This proposal is welcomed by Armin Valet from the Hamburg consumer advice center, but he does not go far enough. He wants products with little content to no longer be allowed on the shelf and for all packaging to be filled to the brim to ensure less trickery and more sustainability.

Manufacturers like the Storck Group are responding to allegations of deceptive packaging by emphasizing that changes to products are based on consumer feedback and are not intended as hidden price increases. However, the consumer advice center is calling for better labeling and transparency regarding reduced filling quantities of products. Consumers should compare prices per kilogram, remember quantities and recipes and examine innovations more closely in order to protect themselves from hidden price increases.