A recent study conducted in Ontario has revealed a concerning trend known as “shrinkflation” in the food industry. This phenomenon refers to the practice of reducing the size or quantity of a product while maintaining its original price, resulting in a hidden price increase for consumers.
According to the study, several food products in Ontario have been affected by shrinkflation, including popular items such as cereal, chocolate bars, and ice cream. The research, conducted by Dalhousie University’s Agri-Food Analytics Lab, analyzed over 100 food products from various retailers in the province.
The findings showed that 59% of the products examined had decreased in size over the past year, with an average reduction of 3.3%. This means that consumers are paying the same amount for less product, resulting in a higher cost per unit.
Sylvain Charlebois, the lead researcher of the study, expressed concern over this trend, stating that it is a “silent tax” on consumers. He also noted that shrinkflation is not a new concept, but it has become more prevalent in recent years due to rising production costs and the impact of the pandemic on the food industry.
The study also revealed that the most affected products were those with high demand and brand loyalty, as companies are more likely to implement shrinkflation on these items without risking a decrease in sales.
In response to these findings, the Canadian Federation of Independent Grocers (CFIG) stated that retailers are facing significant cost pressures, including increased transportation and packaging costs, which may contribute to the need for shrinkflation.
However, consumers are advised to pay attention to the size and price of their favorite food products and compare them to previous purchases to avoid falling victim to shrinkflation. The study also suggests that government intervention may be necessary to regulate this practice and protect consumers from hidden price increases.
In conclusion, the study highlights the need for transparency in the food industry and the importance of consumer awareness. As the cost of living continues to rise, it is crucial for consumers to be informed and make informed purchasing decisions.
