According to the latest consumer spending report from Barclays, there is growing concern amongst shoppers regarding ‘shrinkflation’. This is due to two thirds of shoppers noticing that products such as chocolate and crisps are getting smaller, but are still costing the same or even more.
Shoppers are worried about the impact of this growing trend, with 83% of them expressing concern. Chocolate is the most frequently cited product that has been affected by shrinkflation, with crisps (40%), snack bars (35%) and packs of biscuits (39%) following close behind. To mitigate the issue, 20% of shoppers are now switching to buying products in bulk to get better value for money.
The report also highlighted that, amid rising food prices (88%), over six in 10 shoppers (63%) are looking for ways to reduce their weekly grocery bill. Budget-conscious consumers are using vouchers or loyalty points to get money off shopping (41%), whilst others are buying more frozen food to minimise waste (27%).
As household bills continue to rise, half of consumers (50%) are cutting down on discretionary spending. In contrast, the trend of ‘insperiences’ – finding new ways to have fun at home – has grown in popularity. Digital content and subscriptions, as well as takeaways, both saw their highest increases this year (10.2% and 13.1% respectively).
Esme Harwood, Director at Barclays, stated that “consumers are still paying close attention to their everyday spending, and we are seeing growing concerns around ‘shrinkflation’ in the weekly shop. Many are having to forgo discretionary purchases to offset rising food prices, with clothing and restaurants most impacted.”
The report’s Head of European Economics Research, Silvia Ardagna, warned that despite falling inflation, the prices of core services and goods remain stubbornly high, which continues to constrain real household disposable income and spending. “The UK economy has escaped a technical recession for now, but the forward-looking outlook remains one in which the economy is likely to stagnate as the impact of monetary tightening will more than offset the relief from lower energy prices.”
