Business Bayani PH

Reach for your instant coffee sachet — is it feeling a little lighter? Grab your laundry detergent pack — does it seem to hold less? You’re not imagining it. This sneaky tactic, dubbed “shrinkflation,” is quietly shrinking the size of everyday products in the Philippines while prices stay the same, leaving Filipinos feeling cheated and their wallets stretched thin.

Consumer experts maintain that the majority of households (if not all) have encountered shrinkflation, impacting essential items like food, toiletries, and cleaning products. 

This is supported by various reports indicating the prevalence of shrinkflation in the Philippines. For example, the president of the Philippine Amalgamated Supermarkets Association lamented the practice, citing examples such as the reduction in the size of sardine cans and pandesal, a popular type of bread. 

The phenomenon has become more prevalent, with the country experiencing high inflation. The long-term projection suggests the inflation rate is expected to trend around 3.40% in 2025.

Is this just a temporary annoyance, or a systemic problem demanding action?

Understanding shrinkflation

Unlike inflation, which raises prices across the board, shrinkflation specifically reduces the quantity of a product while maintaining its price tag. This tactic allows companies to maintain profit margins despite rising production costs, but it leaves consumers paying the same amount for less. 

While shrinkflation is a global phenomenon, it’s become particularly concerning in the Philippines, where inflation pressures have already been squeezing household budgets.

Impact on Filipino wallets and wellbeing

“I used to get three meals out of a pack of instant noodles,” shares Gemma, a street vendor in Manila who is also a mother to four kids. “Now, barely two! It’s not just noodles, everything seems smaller — laundry detergent, soap bars, even the pandesal I buy for breakfast.” 

Stories like Gemma’s are unfortunately common. Shrinkflation disproportionately affects low-income families, who already struggle to make ends meet. The psychological impact is significant too, with consumers feeling misled and frustrated by this hidden price hike.

The ethics of shrinkflation

While companies cite rising costs as a justification, ethical concerns surround shrinkflation. Critics argue it’s deceptive and preys on consumers’ inability to readily notice subtle size reductions. 

There are currently no specific regulations against shrinkflation in the Philippines, although existing laws on fair trade and consumer protection could potentially be applied.

Tips for savvy consumers

But wait, it’s not all doom and gloom! Armed with knowledge, Filipinos can fight back against shrinkflation. Here are some tips:

• Be a detective: Compare unit prices instead of headline prices. Track product sizes over time to spot reductions.
• Become a bulk buyer: If possible, opt for larger sizes, which often offer better value per unit.
• Switch brands: Consider alternatives that offer better value or haven’t shrunk their sizes.
• Speak up: Report shrinkflation instances to consumer groups or authorities. Join collective action initiatives.

Calls for action

United States President Joe Biden’s recent call to “stop shrinkflation” resonated with Filipinos. While his focus was on the U.S. market, it highlights the global nature of the issue. On February 11, he called on snack companies to stop shrinkflation, describing the practice as “a rip-off.”

The Philippine government could play a crucial role by strengthening consumer protection laws, requiring clearer product labeling, and increasing transparency from companies. Consumer advocacy groups must also step up, raising awareness and demanding fair treatment for Filipino consumers.

Shrinkflation is a complex issue with real consequences for Filipino households. While individual strategies can help mitigate its impact, broader action is needed. Increased government oversight, stricter regulations, and empowered consumers are key to ensuring fair practices and protecting Filipino wallets from this hidden price hike. 

Remember, knowledge is power — by understanding and combating shrinkflation, Filipinos can take a stand for their right to pay a fair price for what they get.◼