By Yoohyun Son
Each year in anticipation of Easter, the shelves of UK supermarkets are increasingly laden with chocolate eggs – yet as prices hike, the sizes of those eggs can leave something to be desired. Easter eggs from big-name brands have soared in price by up to 50%, and some have even shrunk in size, following a steep fall in the global cocoa production that started driving wholesale costs to record highs. But more than just a frivolous concern about the cost of luxuries, the sizing of Easter eggs is indicative of the wider trend of ‘shrinkflation’ – another burden on millions in the UK already struggling with rising commodity, energy, and labour costs. A portmanteau of ‘shrink’ and ‘inflation’, ‘shrinkflation’ is a term coined by economists to refer to the reduction in the size of a product in response to rising production costs and market competition. While it isn’t necessarily anything new, it is another financial toll hitting UK consumers in the long-running cost of living crisis.
Although inflation has been the buzzword in headlines, shrinkflation is the lesser-discussed side of the same coin. While official figures showed inflation slowing to 2.8% in February, food prices rose by 3.3%. It is no surprise then that Easter eggs and other products are becoming smaller as producers and supermarkets aim to mask the effects of economic crisis. It may be more strategic for companies to shrink product sizes rather than raise prices, but this does not go unnoticed by consumers. Of course, Easter eggs are not the only commodities hit by the practice of ‘shrinkflation.’ Walkers cut two bags of crisps from its 24-bag multipacks while the price stayed at £3.50. Persil now has 75g less washing powder in a box for the same price of about £5, meaning that shoppers now get 37 washes from a pack, down from 40. Similarly, Cadbury have reduced the number of Creme Eggs in a standard box from five to six.
Companies often claim they are simply adapting to the realities of rising costs, but consumer groups argue that brands are being intentionally deceitful about costs. In August 2024, there was public outrage when Tesco increased the price of its regular meal deal with social media users playing on the company’s slogan ‘Every Little Helps’, suggesting instead that ‘Every Little Hurts’. Indeed, many are left asking where the ‘deal’ is at all with so many price hikes.
This is part of a broader trend where retailers are shuffling pricing structures and emphasising loyalty schemes. Tesco Clubcard, Morrisons More Card, Boots Advantage Card are just a few of the loyalty cards widely available for consumers. Although these schemes have been around for decades, their influence on supermarket pricing structures has transformed and often come to dictate what shoppers can and cannot afford. Historically, loyalty schemes would reward shoppers for their returning custom over extended periods of time, yet now they offer immediate reductions on a wide range of products. According to reports from The Telegraph, these membership systems are taking advantage of desperate customers and ‘fuelling a £300m goldmine for Tesco and Sainsbury’s’.
More than just taking advantage of struggling customers, such schemes have also been criticised for manipulating customers through data-sharing. Geoff Lloyd, director of retail at IT consultancy NTT DATA UK&I, says “the UK version of GDPR [General Data Protection Regulation] demands that loyalty card providers are transparent about their algorithms’ use of customer data.” However, “some retailers may share or sell data to third parties to personalise advertisements and support other targeted marketing efforts.” With companies learning about consumer behaviour as more and more sign up to loyalty schemes, it becomes a dangerous territory for consumers when shopping. Of course, wider implications of these loyalty cards tie in with the conversation on shrinkflation. These cards subtly reshape shopping habits by nudging customers toward specific products under the false pretence that they are saving money. UK Chief of Aldi, Giles Hurley, has commented on this trend among Aldi’s competitors, arguing that what customers want is “clear, transparent prices so they know how much they’re spending long before they get to the till.”
In March 2025, 93% of the British public listed expensive supermarket shopping as the key reason for increases in the cost of living – more than gas and electric bills, fuel costs, or rent and mortgages. Supermarkets are in a similarly tricky position as food producers demand reasonable rates for their crop – Aldi and Asda were both recently criticised by farmers for dropping the price of potatoes as low as 8p. Caught in this position, supermarkets have found using misleading retail tactics the best means to deflect criticism in the midst of an economic crisis. Shrinkflation and supermarket loyalty schemes have been key parts of this phenomenon, but neither look to solve the root problem at the cost of living crisis in the UK. Political action will determine the outcome of this situation, and while in recent weeks Keir Starmer has pledged his commitment to increasing the national living wage, it will take a much longer process of economic recovery before shoppers are once again able to shop at affordable prices for reasonably sized products.
The views expressed in this article are the author’s own, and may not reflect the opinions of The St Andrews Economist.
Image Source: Unsplash