Consumers in the United States are increasingly noticing a phenomenon known as shrinkflation, where food companies reduce the quantity or size of a food product while keeping the same price. According to the October 2024 Consumer Food Insights Report (CFI) from Purdue University’s Center for Food Demand Analysis and Sustainability (CFDAS), over three-quarters of surveyed consumers have observed shrinkflation at grocery stores in the previous 30 days.
The CFI survey, which included 1,200 consumers across the US, aimed to assess food spending, consumer satisfaction, values, support for agricultural and food policies, and trust in information sources. Questions about consumer awareness, experience, and perceptions of shrinkflation were new additions to the survey, shedding light on how consumers view these reductions in product size.
Professor Joseph Balagtas, the lead author of the report and an expert in agricultural economics at Purdue, highlighted the importance of understanding how consumers perceive shrinkflation. The survey revealed that households with children were more likely to notice shrinkflation across various food products compared to those without children.
Interestingly, the survey also showed that while most consumers check the price of food items before buying, fewer consumers pay attention to unit price and weight – key indicators of shrinkflation. Without monitoring unit price and weight, consumers may overlook reductions in the quantity or value of their grocery products.
The sentiment among consumers is that shrinkflation is a common practice used by food companies to increase profits, even when costs are not rising. This perception is fueled by media coverage on grocery prices, accusations of corporate greed, and shrinkflation. Most consumers agree that there should be requirements in place to make product size reductions more transparent to consumers, such as prominent labeling.
Despite concerns about shrinkflation, food satisfaction remains high among American adults, with 69% of consumers classified as “thriving” on the diet well-being index. The findings of the CFI survey provide valuable insights into consumer behavior, perceptions, and attitudes towards shrinkflation and its impact on the food industry.
As food manufacturers continue to navigate the delicate balance between reducing costs and maintaining consumer trust, transparency and clear communication about product size changes will be crucial in building and retaining consumer loyalty. The CFI survey serves as a valuable tool for researchers, policymakers, and industry stakeholders to better understand consumer preferences and concerns in the ever-evolving food market landscape. Food insecurity has remained steady at 13% from the previous month, according to data compiled by the Center for Food Demand Analysis and Sustainability (CFDAS). A notable trend observed by CFDAS analysts is that households with children are more likely to face food insecurity, with 17% of consumers in these households reporting challenges in accessing an adequate supply of nutritious foods. In comparison, households without children have a lower food insecurity rate of 13%.
The researchers at CFDAS also noted that there have been no significant changes in consumer perceptions of food inflation, with the current rate estimated at 5.4%. Additionally, expectations for future food inflation remain at 3%. Despite these challenges, overall weekly food spending has increased to $197 per week, marking a 5.9% rise from the same period last year and an 11.2% increase from two years ago.
Elijah Bryant, a survey research analyst at CFDAS and co-author of the report, highlighted the differences in food consumption patterns between households with and without children. He pointed out that households with children are more likely to rely on meals from restaurants, fast food establishments, or cafeterias, with a significant portion of their food budget allocated towards delivery or takeout options.
Moreover, consumers living with children tend to prioritize foods labeled as ‘sustainable’ or ‘ethical,’ such as wild-caught fish, cage-free eggs, plant-based proteins, or organic products. They also demonstrate a higher propensity for checking labels for information on food origin, recalls, genetically modified organisms, or natural/clean labels.
Interestingly, Bryant noted that consumers with children engage in riskier food behaviors, such as consuming rare meat, unwashed produce, or raw dough. They are also more likely to discard food that has passed its use-by date. The disparities in beliefs between households with and without children are most evident in their agreement with health-related claims. Consumers with children are more inclined to believe that organic food is more nutritious, and they perceive gluten-free products and plant-based milk as healthier alternatives.
Bryant emphasized that these consumer preferences and behaviors position households with children as a potential target demographic for food companies looking to introduce alternative, health-conscious, and sustainability-focused products to the market. The insights derived from the Consumer Food Insights Report aim to inform industry stakeholders and policymakers on strategies to enhance the food system and address challenges related to food insecurity.
The CFDAS, a part of Purdue’s Next Moves in agriculture and food systems initiative, leverages innovative data analysis to drive positive change in the food industry. In addition to the Consumer Food Insights Report, the center offers a range of online dashboards to provide accessible and actionable information for stakeholders in the food sector. Through its research and analytics, CFDAS aims to foster a more sustainable and resilient food system for the benefit of consumers, producers, and the environment. In today’s fast-paced business world, companies are constantly striving to stay ahead of the competition and adapt to ever-changing market trends. In order to achieve this, it is crucial for businesses to optimize their operations and maximize efficiency in all areas of their organization. One key aspect of achieving operational excellence is through effective management of resources, processes, and systems.
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