Cakes shrink, prices stay the same: This is how manufacturers do tricks!

Cakes shrink, prices stay the same: This is how manufacturers do tricks!

The phenomenon ofShrinkflationis increasing more and more in Germany. Recent reporting has made it clear that many manufacturers are reducing the portion sizes of their products to disguise price increases. These hidden price increases are mainly observed in consumer goods, although the price remains the same. Manufacturers sell their goods in the usual packaging, but the contents are melting away, as consumer advocates have discovered. Consumers increasingly feel that product quantities are decreasing while costs remain constant or even increase.

Examples are numerous: a bag of cocoa powder from Suchard was reduced from 500 to 400 grams, while the price increased by 25%. In addition, the Duschdas Sport shower gel not only has less content, but has also become 22% more expensive. Changes in Johnson & Johnson's Listerine mouthwash also reflect this trend, with content decreasing while consumers pay more. daily news reports that such examples of changes in content and price increases are generally not illegal, but are viewed as opaque.

Impact on consumers

TheHamburg Consumer Centeris seeing a record number of complaints about such hidden price increases. The trend of offering smaller products at higher prices started back in 2022, and confirmed cases doubled in the second half of the year. According to the latest figures, the inflation rate for food in July 2023 was already 11% compared to the previous year.

The changes are particularly noticeable in products such as organic Helix licorice snails, which have been reduced from 100 to 80 grams, although the price remains unchanged. This creates a feeling of fraud among consumers as many of the content changes are often hidden or presented as a benefit with slogans such as “New Size”.

The situation in the bakery trade

Shrinkflation is also noticeable in the bakery trade. A master baker and business economist explains that rising material and labor costs mean that prices for traditional baked goods such as strawberry cake are no longer competitive. In fact, based on current costs, a strawberry cake should cost six euros, but it is not sold. In addition, more elaborate baked goods are often not profitable, while simpler products, such as muffins and donuts, bring bakeries more profit. North Sea newspaper highlights that most bakeries generate their profits primarily from rolls and breads.

The shrinkflation trend highlights how manufacturers and retailers are trying to hide rising costs. This practice encourages consumer mistrust and leaves a bad aftertaste. Whether in the supermarket or the bakery - consumers are increasingly recognizing the effects of this strategy and are demanding transparency in pricing policy.