SUNDAY, April 14, 2024
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Thais accept ‘shrinkflation’ trends, while global survey finds mixed sentiments

Thais accept ‘shrinkflation’ trends, while global survey finds mixed sentiments

A recent survey by Ipsos (Thailand) shed light on the phenomenon of “shrinkflation” in the Thai market, where businesses subtly reduce product sizes or alter ingredients to maintain the original price.

According to the findings, 39% of Thai consumers have noticed a reduction in product sizes, while prices remain unchanged.

Another 57% have noticed prices rising despite product sizes remaining the same, while 29% have observed changes in ingredients without a corresponding adjustment in prices.

“Interestingly, 50% of Thais think it is acceptable for businesses and retailers to reduce the size of their products while keeping prices the same,” Ipsos said.

Among various product categories, 52% of respondents identified shrinkflation in savoury snacks, followed by premade meals (50%), chocolate and sweets (46%), fresh vegetables and fruits (40%), frozen snacks (36%), non-carbonated drinks (34%), bread (34%), fresh or frozen meats (31%), milk (31%), coffee (30%) and carbonated drinks (30%).

The survey also explored global perceptions, indicating that 61% of respondents across 33 countries believe that the cost of food and household products will rise in the next six months. Furthermore, 59% anticipate an increase in the cost of utilities (electricity and cooking gas) and fuel, while 41% foresee nights out and socialising to become expensive.

Additionally, 31% believe subscription costs, such as memberships for video streaming platforms or gyms, will rise.

Thais accept ‘shrinkflation’ trends, while global survey finds mixed sentiments

“An average of 38% of respondents in 33 countries believe that the cost of utilities will rise in the next six months,” Ipsos said.

“One in two globally [48%] say they find businesses/retailers reducing the size of their products while keeping prices the same as a way of responding to rising costs is unacceptable.”

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