Most grocery shoppers surveyed reported being aware of shrinkflation

According to the October 2024 Consumer Food Insights Report (CFI), more than three-quarters of consumers surveyed said they had noticed shrinkflation at their grocery store in the past 30 days. .

The research-based report, published by Purdue University’s Center for Food Demand Analysis and Sustainability (CFDAS), assesses food spending, consumer satisfaction and values, agricultural and food policy support, and the credibility of information sources. are. Purdue experts surveyed and evaluated 1,200 consumers across the United States.

The latest CFI survey includes questions about the product information consumers seek most when purchasing food in stores. The survey found that 82% of consumers “often” or “always” check food prices before purchasing.

Fewer consumers “often” or “always” check unit price (51%) or weight (44%). “Unit price and weight, in particular, are important indicators of shrinkflation. Without looking at weight and unit price, consumers may not notice a decline in the volume or value of a typical food item,” Balagtas said. said.

Most consumers (82%) believe that shrinkflation is a common practice by food companies, and 76% believe it is the result of an attempt to increase profits even when costs have not increased. There is.

“It is interesting, but not entirely surprising, to see this sentiment as stories about food prices, accusations of corporate greed, and shrinkflation continue to circulate in popular news media.” said Balagtas. For example, National Public Radio and US Today both covered the topic in September.

“Our research on food value shows that price and affordability are top concerns for food shoppers, and one way food manufacturers can lower prices is by reducing the size of their products. “However, reducing the size of the product may cause consumer dissatisfaction,” he said. Said. Approximately 74% of consumers agree that requirements should be in place to make product size reductions more transparent to consumers, such as prominent labeling.

Food satisfaction remains high among most American adults, with 69% of consumers classified as “affluent” on the Dietary Well-Being Index. Food insecurity remained unchanged from last month at 13%.

Elijah Bryant, research analyst at CFDAS and co-author of the report, said, “Households with children are particularly likely to experience food insecurity, and 17% of consumers in these households do not eat enough “reported difficulty in accessing nutritious food.” . Households without children reported lower rates of food insecurity (13%).

Questions about consumer awareness, experience, and perception of shrinkflation were new to the CFI survey. In shrinkflation, food companies reduce the amount or size of food while maintaining the same price.

“A variety of factors can influence a producer’s decision to reduce product size, including rising costs and inflationary pressures in the supply chain,” said the report’s lead author, a professor of agricultural economics at Purdue University. said Joseph Balagtas, professor of science and director of CFDAS.

“The goal is to better understand how consumers perceive these reductions and whether they realize they are actually happening.”

The new CFI survey categorized consumer responses into two groups: households with children and households without children. Among consumers who noticed shrinkflation, 78% said they observed it in snack foods and 53% said they observed it in packaged desserts and confectionery. Just under half, 48%, said they had observed shrinkflation in frozen foods. People with children report seeing shrinkflation in a variety of foods.

CFDAS researchers found no significant changes in consumers’ expectations of food inflation (5.4%) or future food inflation (3%). Overall weekly food spending increased to $197, 5.9% more than this time last year and 11.2% more than two years ago.

“Households with children report eating more meals at restaurants, fast food restaurants, and cafeterias than households without children, and spend more of their budget on on-the-go meals,” Bryant said. is earmarked for delivery and take-out options.”

Bryant said, “Consumers living with children are more likely than adults without children to choose foods that are generally considered ‘sustainable’ or ‘ethical’, such as wild-caught fish, cage-free eggs, plant-based proteins, and organic foods. “They report choosing foods that are labeled more often.” Similarly, people with children are more likely to check food labels for origins, recalls, GMO ingredients, or natural/clean label.

“Somewhat surprisingly, consumers with children in the household report more risky eating behaviors, such as eating exotic meats, unwashed produce, and raw dough,” Bryant said. said. Consumers with children are also more likely to throw away food that is past its use-by date.

“The biggest difference we see between households with and without children is in the congruence of health-related claims,” ​​Bryant said. People with children are more likely to agree that organic foods are more nutritious and that gluten-free foods and plant-based milks are healthier.

“Consumer beliefs about these statements, and the frequency with which they report choosing these non-conventional foods when grocery shopping, are driving the market towards alternative, healthier, and more sustainably-focused foods.” “This suggests that people with children are a potential target audience for food companies looking to invest in the market,” Bryant said. .