In its latest market investigation, the Hong Kong Consumer Council has sounded the alarm on “shrinkflation,” a retail tactic where product volumes decrease while prices remain steady or even increase. The study, featured in the 576th issue of Choice magazine, scrutinized 62 supermarket items over a three-and-a-half-year period, revealing that over 90% of the sampled goods had undergone size reductions. With some items losing up to 30% of their original weight, the Council is urging residents to look beyond the shelf price and scrutinize unit values to protect their wallets.
The Subtle Art of the Squeeze
Shrinkflation often goes unnoticed because shoppers are psychologically conditioned to react to price tags rather than net weight. According to the Council’s data—collected from the Online Price Watch tool between January 2021 and July 2024—the vast majority of the 62 items, comprising snacks, daily necessities, and pet food, “shrank” during the survey period.
The most significant reduction was observed in a brand of Kellogg’s cornflakes, which plummeted from 250g to 175g, a staggering 30% loss. Other notable examples included canned hot dog sausages (down 20%) and a specialized massage cream (down nearly 20%). Perhaps most alarming were the “repeat offenders”: Oreo cookies and Friskies cat food were found to have reduced their weight twice within less than three years.
Masking Costs with New Formats
Manufacturers often utilize creative packaging changes to mask these reductions. The investigation identified three common tactics used to implement shrinkflation:
- Quantity Reduction: McVitie’s Club Orange biscuits dropped from eight packs to seven per box, while M&M’s Peanut Chocolate multipacks decreased from 15 to 13 bags.
- Dual Shrinkage: Glico Pretz Salad sticks saw a reduction in both the number of individual sachets and the weight of the sticks inside each sachet.
- Variations Across Lines: Nissin Cup Noodles adjusted different flavors by different margins, with Seafood and Shrimp flavors seeing weight drops of 4% and 1.3%, respectively.
Rising Unit Prices and Consumer Advice
The financial impact on consumers is substantial. Among 39 products with available suggested retail prices, the cost per unit (e.g., per 10 grams) rose by more than 10% for nearly 40% of the items. The most extreme case saw a unit price surge of 26.2%. Furthermore, long-term tracking showed that six months after a volume change, 95% of the products remained at a higher unit price than before the adjustment.
To navigate this landscape, the Consumer Council offers three actionable strategies for smarter shopping:
- Calculate Unit Prices: Don’t just look at the total price; divide the cost by the weight to find the true value.
- Watch for “New Look” Labels: Phrases like “new formula” or “upgraded packaging” are frequent indicators that a volume change has occurred.
- Utilize Digital Tools: Use the Online Price Watch platform to compare historical data and current market rates across different supermarket chains.
As global supply chains continue to face inflationary pressures, the burden is increasingly shifting to the consumer through these invisible hikes. Staying informed and utilizing price-comparison resources are now essential skills for the modern Hong Kong shopper.