Shrinkflation: Price increases with reduced filling quantities – deceptive packaging on the rise

Shrinkflation: Price increases with reduced filling quantities – deceptive packaging on the rise

According to a report from www.rnd.de, the trend of “shrinkflation” has expanded, in which packaging becomes smaller and prices still rise. The Hamburg consumer advice center has recorded a record number of “deceptive packages” and many food products are affected. This domino effect results in costs being passed on from manufacturers to retailers and from retailers to consumers. The inflation rate rose to 5.9 percent in 2023, which led to an increase in the price of products. Experts confirm this trend and expect that “shrinkflation” could level off in 2024.

Consumers are increasingly paying attention to the filling quantity and are demanding more transparency from supermarkets, while manufacturers justify their price increases with increased costs along the supply chain. A draft law from the Federal Ministry of Consumer Protection stipulates that packaging whose contents are reduced without the size of the packaging being reduced in the same proportion should no longer be permitted.

The possible impact on the market and the financial sector could be that consumers pay more attention to prices and filling quantities and, if necessary, switch to alternative products. Companies affected by shrinkflation could see lost sales as consumer advocates and lawmakers demand transparency and regulation. Overall, this could lead to increased sensitivity to price increases and packaging changes.