As we navigate the aisles of our local supermarkets, armed with shopping lists and an eye for bargains, there's a sneaky phenomenon taking a bite out of our budgets—and it's not as obvious as a price hike.

It's called 'shrinkflation', and it's a term that's all too familiar for Australian consumers at this point, especially those who remember when a dollar stretched much further.

Shrinkflation is the process where manufacturers reduce the size or quantity of their products while keeping prices the same, or even increasing them.

This can be a double whammy for shoppers: not only are you getting less for your money, but you might not even notice it's happening.

The consumer group CHOICE has recently shed light on the extent of this issue, which is affecting everything from Easter staples like hot cross buns to everyday items such as breakfast cereals, biscuits, and cleaning products.

With the cost of living already a concern for many, particularly those in their golden years managing on fixed incomes, understanding shrinkflation is more important than ever.

'Shrinkflation' is when products are sold at a higher or unchanged price, despite reduced sizes. Credits: Shutterstock

Take the case of hot cross buns—a seasonal favourite. Community Co's traditional and chocolate varieties have seen a reduction of 30 grams (6.3 per cent) in size since last year, with prices rising by 12.5 per cent to $4.50.

This price increase is more than triple January's annual inflation rate of 3.4 per cent.

Metcash, the group behind IGA (which stocks Community Co hot cross buns), cited the change to a new supplier as the reason behind this increase.

‘The price also increased from $4 to $4.50 due to recipe improvement, which included increasing the chocolate chip content from 18 per cent chocolate (cocoa and milk chips) to 20 per cent chocolate (cocoa and dark chips), and the rising cost of goods, including the increase in the cost of flour and chocolate,’ a spokeswoman explained.

‘That being said, our Community Co hot cross buns are part of our Price Match Program which matches the lowest regular shelf price, of Coles and Woolworths on hundreds of everyday products, so the price has come down to $4, so while the pack size has decreased slightly, the price remains the same as last year.’

Breakfast cereals are another battleground. Coles and Woolworths have both been found to reduce the volume of their cereal products without reducing the price.

For example, Coles’ Mighty Grain 495g ($4.50), a product similar to Kellogg's Nutri Grain, was reduced in size by 11.6 per cent—from 560g in October 2022 to 495g in March 2024—yet the price remained the same.

A spokeswoman of Coles claimed that these changes are due to increased production costs.

‘We can assure our customers that we have not profited from the change in pack size of Coles Mighty Grain and Coles Corn Flakes cereals, and that all of the cost price relief has been retained by our supplier, who has experienced increases in the cost of production and raw ingredients,’ she stated.

‘Our supplier let us know it was changing the pack size for its cereal products, both branded and private label, so that it could simplify production and supply chain.’

On the other hand, Woolworths’ Max Charge Cereal 495g ($4.50) was reduced from 560g in September 2023 to 495g in March 2024.

However, according to a Woolworths spokeswoman, their house-branded products were cheaper by 30 per cent compared to similar-branded products.

‘Our suppliers requested the changes in pack sizes,’ she explained.

‘We can confirm that there was no financial benefit to Woolworths by changing the size of these products, as the cost from the supplier to us did not decrease.’

‘On average, these two products are also more affordable than similar branded products,’ she added.

According to data from the Australian Bureau of Statistics, bread and cereal prices experienced a 7.4 per cent increase in the period up to January.

The issue of shrinkflation is impacting biscuits as well, with McVitie's Go Ahead Crispy Slices Forest Fruit 174g ($4.40) items maintaining their price at $4.40 despite shrinking by 20.2 per cent to 174 grams from 218 grams since June 2022.

However, it's not just food items that are shrinking. Cleaning products like Jif’s Power & Shine Bathroom Cleaner 500mL ($4.00) had seen a significant reduction in volume with a substantial price increase.

The cost has risen by 60 per cent, while the volume has decreased by 28.6 per cent from 700mL in May 2022 to 500mL currently—amounting to more than double the price per 100mL.

Community Co, United Biscuits, and Unilever Australia have yet to comment regarding this issue.

Meanwhile, at ALDI, another contentious detail spotted in one of its products has stirred up further discussion about product standards and transparency in the grocery industry.

Key Takeaways

• Consumer group CHOICE highlighted the 'shrinkflation' issue, where supermarkets sell products at higher or unchanged prices, despite reduced quantities in the package.
• Notable examples included hot cross buns and breakfast cereals, which have seen a reduction in size along with an increase in price, affecting value for money for consumers.
• Supermarkets such as Coles and Woolworths faced questions about these practices, with spokespeople citing increased production costs as a reason for the changes in pack sizes.
• The phenomenon is widespread, affecting various products, including biscuits and cleaning products, with some items shrinking in size while the price remains the same or increases.

Have you noticed products shrinking in size at your local supermarket? Share your experiences in the comments below.

 

[freedy50]

It gets done here and the UK. And what will be done about it? Nothing!!!

 

[Fussy]

An item that we almost all love is chocolate, the brand I’m referring to is Cadbury, their blocks of chocolate have been 200g which they still advertised on TV as having a glass and a half of rich full cream milk, the only thing is the blocks have been reduced to 180g, I realise Cocoa has gone up in price just recently however their jingle is still the same, and the price has not gone down.

 

[Greg350]

So all the whingers, would you like the government to control prices? Everyday I read about people whinging about the government being in everyone's business, too much regulation but when it comes to pricing you want them to control???

This is life in a free country, go to North Korea if you don't like it, plenty of control there for you.

 

[Tygie]

Anything like Allens snakes - they were $5.50 for 470g now $6.75 for same amount at Coles BUT if you go to Woollies you get 405g for the same price and now Big W has put their 1kg bags up from $13 to $15 and they have the same smaller pack size as Woollies (Duh Woollies owns them) While the weight might not have changed the size of the snakes have comparing to a older pack (though still well in date) the overall size of the snakes are skinnier/thinner. This is like shrinkflation and a price rise together.

 

[Willfish]

As prices rise and product size shrinks, I am getting angrier towards both product manufacturers and the supermarket - mainly the former. My response it to become increasingly picky as a shopper - I wait until some products are on special then buy enough to last a few months (non-perishables), buy more of the home brands, shop more at Aldi (who often have better products anyway), and use my shopping rewards card to get a discount. The bottom line is manufacturers greed. Wages have not risen anywhere near as fast as wages (which is the total end cost of a product), so the gap is obviously increased profit and greed.

 

[Ezzy]

My butter used to be $3.50/500g tub, now $7.90. On “special” it is $6/500g tub. So l rarely buy it. I give myself a treat once in awhile.

If making a sandwich or making toast for myself l don't use butter at all & have done so for a few years & don't notice any difference if using jam, honey, Vegemite or peanut paste.

 

[maurice wildish]

The monopoly/duopoly that the super markets have allow them to dictate what the customer can buy not supply what the customer wants . The various governments of both persuasions have allowed take overs and international company take overs to reduce competition such they can do what they want; It applies to Electricity, petrol/fuel gas , Health funds ,many of the basics for daily living. I need to check on ownership of Milk and bread supply companies I wonder how many are owned by international interests?

Morning all, its a pity our Govts do not put into action the laws and hot wind they talk about so much, they are like the barbers cat, on 90% if issues, where they shine is on salary increases for themselves, so sad they all seem to be the same, they should try living a life on $20,000.00/ year

 

[leoleoniek]

I have notice for a long time now so it's not going to be a surprise.

 

[MarieLl]

This has been going on for some years now, the first thing I noticed was toilet rolls, gradual reduction in amount of sheets per roll over the last few years, prices gone up at the same time. All tin and packaged foods same thing, particularly bad when following a recipe as you now have to open 2 packs to make up the short fall, the size of packaging the same so you don't notice which is deceiving. The 500g butter isn't 500g anymore even though it says that on the packaging, as I weigh the amount for my recipes it is just under have tried 2 different brands Australian and New Zealand brands.

 

[MarieLl]

Simple
Do not buy rubbish such as sugar laiden cereals as most unhealthy
never could understand that as being healthy when its not
nor hot cross buns as its just a bread roll and nothing special about it

It is happening in most packaged foods not just cereal and chocolates. Check your toilet rolls, tin and packaged foods

 

[Chezz 5]

Cottees marmalade and jams have had a huge reduction in size.

 

[Luckyus]

Just like covernment no real interest in your well being, except in they make an exception just before elections of kind of government?.

 

[PaulB21]

They shrunk the Bundy rum bottle down from 750ml back in the '90's(?). This was one of the first size reductions that I recall. I remember this as stopped consuming alcohol around the same time 30 years ago.
So sadly shoppers this practice is nothing new

 

[Reet]

I've noticed this for a long time. Cereal packets are the same size but the contents are a lot less inside. Also toilet rolls are so much smaller. The roll is not as wide as it used to be and the inside cylinder has a larger diameter and the amount of paper on the roll is considerably less than it used to be. There again the price has not even stayed the same but gone up. We all have to use such things so what choice do we have but to buy them.

 

[Reet]

The monopoly/duopoly that the super markets have allow them to dictate what the customer can buy not supply what the customer wants . The various governments of both persuasions have allowed take overs and international company take overs to reduce competition such they can do what they want; It applies to Electricity, petrol/fuel gas , Health funds ,many of the basics for daily living. I need to check on ownership of Milk and bread supply companies I wonder how many are owned by international interests?

In the case of milk, the local farmers milk is priced up when it reaches the supermarket but the farmers are not getting the benefit of the mark up, the supermarkets are taking all the profit for themselves.

 

[Carsrme]

Shrinkflation is the sneaky way of grabbing more of your hard earned money.
A good example, is bottled Breakfast Marmalade. The price is the same, but the jar, and content, has shrunk from 450 GM, down to 375 GM.
Carsrme

 

[cobih]

This is not a new phenomenon. I remember back in the 90's buying 2 cans of tomatoes and one can had 25gm less than the other but both were at the same price.

 

[deni67]

I was pleasantly surprised recently with my giant box of Corn Flakes only sold in that size in Woolies.
There was no 'shrinkflation', when I opened the box it was chockers full. I buy the product not from the price so I know that i'm going to buy what i'm going to enjoy!!

 

[Rujam]

IF it's due to rising costs, why don't manufacturers reduce the size of the packaging, how much would they save on cardboard, foil and printing ink? Did you know that printing ink is one of the most expensive liquids in the world!

I buy Equal sachets and I have noticed that the individual packets are smaller but the amount is still the same so perhaps they are doing the right thing and trying to save paper etc.

 

[Diji]

Cadbury used to have a Family block 250g, however that was probably 20 year's ago, so they've been doing it for a long time already. Now their blocks are as low as 155g, but same price...not sure if they still call them 'Family '....also Pringles which used to be 200g are 114g. Same size tube, smaller chips, but same price.