Consumers take notice of shrinkflation

Three out of four surveyed consumers say they have noticed shrinkflation at the grocery store in the previous 30 days, according to the October 2024 Consumer Food Insights Report from Purdue University.

Shrinkflation is described as when food companies reduce the quantity or size of a food product while keeping the same price.

“A variety of factors may influence a producer’s decision to downsize a product’s size, such as rising costs in the supply chain and inflationary pressures,” Joseph Balagtas, professor of agricultural economics at Purdue and the report's lead author, said in a news release. “The goal is to better understand how consumers perceive these reductions and if they have noticed them happening at all.”

The survey sorted 1,200 consumer responses into two groups: households with children and those without children. Of the consumers who noticed shrinkflation, 78% say they have observed it in snack foods and 53% in packaged desserts and sweets. Just under half, 48%, also said they have observed shrinkflation in frozen foods. Those with children report seeing shrinkflation in a wider variety of food products, according to the release.

The latest Consumer Food Insights survey included questions about product information that consumers most look for when buying food at the store. The survey showed that 82% of consumers “often” or “always” check the price of food items before buying.

Fewer consumers “often” or “always” check for unit price (51%) or weight (44%).

“The unit price and weight in particular are key indicators of shrinkflation. Without checking weight or unit price, consumers may not notice reductions in the quantity or value of their typical grocery products,” Balagtas said.

Most consumers (82%) think shrinkflation is a common practice used by food companies, and 76% believe it is a result of trying to increase profits even when costs are not rising.

“Our research on food values shows that price and affordability are among the top concerns for food shoppers, and one way for food manufacturers to reduce the price is to reduce the size of a product,’ Balagtas said. “But reducing product size could cause consumer resentment.”

Around 74% of consumers agree there should be requirements in place that make product size reductions more transparent to the consumer, such as prominent labeling.

Food satisfaction remained high among most U.S. adults, with 69% of consumers classified as “thriving” on the diet well-being index. Food insecurity remained unchanged from last month at 13%.

“Notably, households with children are more likely to experience food insecurity, with 17% of consumers in these households reporting difficulties accessing adequate amounts of nutritious foods,” Elijah Bryant, a survey research analyst and co-author of the report, said in the release. Households without children report a lower food insecurity rate (13%).

Researchers saw no significant changes in consumer estimates of food inflation (5.4%) or expectations for future food inflation (3%). Overall weekly food spending rose to $197 per week, 5.9% higher than this time last year and 11.2% higher than two years ago, the report said.

“Households with children report eating more meals from restaurants, fast food places or cafeterias than households without children, and much of their budget for food away from home goes toward delivery or takeout options,” Bryant said.

“Consumers living with children report choosing foods that are commonly labeled as ‘sustainable’ or ‘ethical,’ such as wild-caught fish, cage-free eggs, plant-based proteins or organic foods more frequently than childless adults,” Bryant added. Similarly, those with children tend to check labels for food origin, recalls, genetically modified organism ingredients or natural/clean labels.

“Somewhat surprisingly, consumers with children in their households report engaging in risky food behaviors — eating rare meat, unwashed produce or raw dough, for example,” Bryant said. Consumers with children are also more likely to throw away food that is past the use-by date. 

“The largest differences we observe between households with and without children come in the agreement with health-related claims,” Bryant said. Those with children are more likely to agree that organic food is more nutritious and that both gluten-free food and plant-based milk are healthier.

“Consumer beliefs about these statements and the frequency at which consumers report choosing these nonconventional foods when grocery shopping suggest that those with children are a potential target demographic for food companies looking to bring alternative, health and sustainability-focused foods to market,” Bryant said.