Hong Kong’s Consumer Council (CC) has issued a stark warning to shoppers, revealing that over 90% of frequently purchased supermarket items have secretly undergone “shrinkflation,” where product volume or weight decreases while prices remain static or even increase, effectively raising the cost for consumers. The comprehensive investigation, published in Issue 576 of the Council’s Choice magazine, analyzed 62 grocery and household products that experienced volume changes between January 2021 and July 2024, uncovering that these stealth price hikes soared up to 26.2% per unit.
The study, which derived data from the CC’s “Online Price Watch,” confirms that shrinkflation is a widespread corporate strategy in local supermarkets, allowing manufacturers and retailers to pass on rising production costs without notifying consumers through overt price increases.
Scale of Product Reduction and Hidden Costs
The investigation spanning three and a half years found that 58 out of the 62 products surveyed had reduced their size or content. The scale of reduction ranged from a nominal 1.3% up to a substantial 30%. Notably, 25 items were downsized by 10% or more. The most significant reduction, a massive 30%, was found in a brand of cornflakes, shrinking from 250 grams to 175 grams. Food items, particularly confectionery, biscuits, and snacks, were the most common categories affected, along with personal care products.
Three products were found to have undergone downsizing twice in less than three years, demonstrating an aggressive approach to cost management. This double reduction included two variants of a popular sandwich cookie and a brand of dry cat food, which saw its weight drop by approximately 16.7% overall.
While the physical content decreased, the price consumers paid for the remaining volume often climbed. For 39 products with available suggested retail prices (SRPs), 16 saw their price per unit (per 10g, ml, or piece) increase by 10% or more. The most dramatic hidden price surge was observed in a club chocolate sandwich biscuit product, where the SRP increased concurrently with a weight reduction, resulting in a 26.2% jump in the cost per 10 grams.
Short- and Long-Term Price Impacts
The financial impact on consumers became immediately apparent when tracking actual retail prices post-change. Within one month of the downsizing, the average unit price for approximately 85% of affected products (51 out of 62) had increased. One item, a high-efficacy stretch mark massage cream, saw its average price per 10 grams skyrocket by a staggering 103.6% in the immediate aftermath of its size reduction—a reduction that, without the accompanying price retention, resulted in a 39.6% jump in suggested retail price per unit.
In the long term, the pattern worsened; six months after the volume changes, 95% of the products studied had a higher average unit price compared to the six months prior to the change.
Interestingly, four products did buck the trend by increasing their size or weight, though the overall phenomenon overwhelmingly points toward products offering less value.
How Consumers Can Counter Shrinkflation
To navigate this landscape of stealth price increases, the Consumer Council advises Hong Kong shoppers to adopt several active consumption strategies:
1. Calculate Unit Price: Consumers must move beyond focusing solely on the total price. Paying attention to the net weight or volume, and calculating the price per unit (e.g., price per 100 grams or 100 milliliters) allows for direct comparison of actual value pre- and post-change, or between brands.
2. Scrutinize Packaging Changes: Be vigilant when permanent grocery items feature new packaging designs, different shapes, or marketing phrases like “new formula” or “improved.” These changes often signal an upcoming adjustment in content size or weight.
3. Utilize Digital Tools: The Council strongly recommends using the “Online Price Watch” platform (https://online-price-watch.consumer.org.hk/opw) to compare unit prices across different retailers and over time, providing transparency that mitigates the effectiveness of shrinkflation tactics.
The findings underscore a crucial shift in consumer vigilance. As manufacturers increasingly resort to subtle reductions to manage inflation, informed comparison shopping, rather than reliance on shelf prices alone, is essential for maintaining household budgetary health in Hong Kong.