When production costs rise, brands often turn to “skimpflation” to save money.
This is where the recipe for a food or drink item is changed to try and reduce production costs.
Despite the lowered production costs, shoppers still pay the same amount of money that they did before.
But shoppers still pay the same, or more.
It means shoppers won’t pay more when costs increase for the company making the item – but they will get less product.
Smaller products are easier for customers to digest compared to increasing prices, making it a popular option for manufacturers as it’s less noticeable.
Another tactic for businesses is “shrinkflation”.
This is where they reduce the size of their products, while keeping the buying cost level.
That means shoppers are buying less of the product for the same amount of money.
