It’s a Fact! Consumers Prefer Paying More Than Being Cheated on Size
To shrink or not to shrink? That's the dilemma facing many brand owners currently battling with soaring energy and raw material costs. Do they increase prices and retain the current offer? Or do they entertain the option of reformulating a much-loved product to shrink its size?We've recently seen a wave of big names in the food and drink industry, like McVitie’s, Cadbury, Warburtons, and Hellmann's resort to "shrinkflation" in an attempt to cope with increasing costs. But which route do consumers actually prefer?
What we did
We wanted to understand what people thought about the ways manufacturers are responding to the cost-of-living crisis. So, we asked our consumer community for their input across 15 popular grocery categories. We gave them a choice - would they prefer products to be reduced in size to keep price the same, or increased in price to keep size the same?
What we found
Our data reveals an important finding - despite the rising cost-of-living, consumers are willing to pay more for products rather than be short-changed on size. This holds true across all 15 product categories.When it comes to household staples like pasta, breakfast cereals, and canned goods, consumers are particularly resistant to size reduction. Burgers and sausages, bread, cheese, crisps, and chilled ready meals follow closely behind in this trend.Interestingly, condiments seem to be more acceptable for downsizing, with only 51% of consumers willing to pay a higher price in this category. Moreover, consumers are more open to size reduction on products they consider a treat, with confectionary, biscuits, and soft drinks showing less resistance to size reduction compared to other categories.Check out our survey's complete results below:
Want to know where your category sits?
Do you want to know where your category stands? Or perhaps you need some help with consumer closeness during these tough economic times? We'd love to help! Get in touch with our friendly team today, and let's get talking.