Less for same
Shrinkflation squeezes consumers as inflation bites
Have you noticed your favourite grocery items shrinking in size, but prices stay the same?
It’s called shrinkflation, a quiet but pervasive trend hitting Jamaican consumers’ pockets without them realising. From condensed milk to canned tuna, shoppers are getting less for their money, as companies reduce product sizes rather than increasing prices, hoping that consumers won’t notice the difference.
The phenomenon is not new, but recent reports coming out of the Consumer Affairs Commission (CAC) suggest that an increasing number of companies are engaging in the practice.
A market surveillance shared with the Jamaica Observer revealed that the trend has continued across various staple goods, with the phenomenon now affecting more categories.
For example, a popular brand of condensed milk, which once held 392 grams, was reduced to 390 grams before dwindling to 385-gram tins.
“The commission contacted the manufacturers to ascertain whether this was a labelling error of three different weights for a single type of product for which there was no price difference. The commission was informed that the manufacturer’s market study was being conducted. Currently, it has been observed that the 385 grams of condensed milk is now available on the shelves at the same price,” the CAC said.
In another case, a company that produces canned tuna has reduced the product size from 170 grams to 142 grams, while bath soaps previously weighing 110 grams are now often found in 100-gram bars.
The CAC declined to name the companies but noted that despite these reductions prices have remained steady, leading many consumers to feel shortchanged.
“Consumers are much more sensitive to price increases than they are to volume reductions,” explained Mark Stiving, a pricing expert from US-based Impact Pricing in the CAC document. This price sensitivity has made shrinkflation an attractive option for manufacturers facing increased production costs.
By keeping prices stable, companies can retain customer loyalty, even as they deliver smaller quantities. However, these subtle changes often go unnoticed by consumers until their frequency and impact accumulate.
The growing prevalence of shrinkflation correlates with inflationary pressures and rising interest in Jamaica, which started around late 2020 following the outbreak of the COVID-19 pandemic. While the annual inflation rate slowed to 5.7 per cent in September 2024 from a peak of 6.5 per cent in August, prices for consumer goods remain elevated. To mitigate these costs, manufacturers are increasingly opting to downsize products rather than raise prices.
Jamaica’s experience mirrors trends worldwide, as companies in several markets adopt shrinkflation to balance rising production expenses. In the United States, lawmakers have scrutinised major brands, including General Mills, Coca-Cola, and PepsiCo, for engaging in shrinkflation tactics. U.S. Senators, including Elizabeth Warren, have accused these corporations of “profiteering” from consumers by reducing product sizes without lowering prices, calling for transparency and fair practices.
Similarly, in the United Kingdom, brands like Febreze have faced public backlash. The company recently downsized its air fresheners from 300ml to 185ml while keeping prices unchanged, effectively increasing the price per litre. Consumers expressed frustration, accusing the brand of hiding price increases in the form of smaller portions — a sentiment increasingly echoed in Jamaica as local consumers face similar practices.
With economic pressures on manufacturers unlikely to ease in the short term, shrinkflation is expected to persist. For consumers already navigating a high-cost environment, this trend will only add further strain to their budgets.
How to spot a ‘shrinked’ product
In response to rising complaints, the CAC is advising consumers to be vigilant and proactive when shopping. To help consumers make informed decisions, the CAC has shared practical strategies to detect and counteract shrinkflation’s impact:
1) Check packaging for changes
Redesigned packaging or new slogans may signal a reduction in size. Inspecting labels carefully can help consumers spot subtle differences in product weight or volume.
2) Compare unit prices
Although tracking unit prices can be challenging, comparing similar products based on price per gram or millilitre can highlight which options deliver the best value.
3) Consider store brands
Store brands often maintain consistent sizing and may offer better value than national brands. Competing brands may also temporarily avoid downsizing, providing an opportunity to maximise value.
4) Look for net weight on canned products
For items canned in liquid, examining the net weight can reveal the actual quantity of the product. This allows consumers to detect reductions in volume.
5) Be aware of packaging tricks
Manufacturers may alter the container design to mask shrinkage. Checking the bar code, product description, and weight can help ensure that you’re getting the expected quantity.
The CAC is also advocating for more transparent labelling practices to ensure that consumers are not misled. “We urge consumers to read labels and packaging carefully to understand the impact of shrinkflation on their purchases,” the commission stated. As inflation and supply chain challenges affect global markets, consumer awareness is crucial in helping Jamaicans make informed purchasing choices.