Shrinkflation has emerged as one of the biggest frustrations for UK consumers, with a third (33 per cent) describing reduced product sizes as one of Britain’s biggest “mug offs”, according to new research.
The finding, from a survey of 2,000 UK adults commissioned by mobile provider iD Mobile, puts shrinkflation second in a ranking of the everyday charges and pricing practices consumers consider most unfair, behind energy standing charges (39 per cent).
For convenience retailers, the finding highlights the growing sensitivity around value for money, particularly as manufacturers adjust pack sizes and prices in response to cost pressures.
In June last year, the Liberal Democrats called for a legal requirement for large supermarkets to alert shoppers when a pre-packaged product has been reduced in size while its price remains unchanged, or when the change results in a higher unit price.
The latest research suggests consumer frustration with pricing practices extends beyond shrinkflation. More than seven in 10 shoppers (72 per cent) believe hidden fees and price increases have become worse over the past five years, while 40 per cent believe businesses have become better at disguising price rises and additional charges.
More than a third (37 per cent) also say it has become harder to tell whether they are getting good value for money.
The research found that 78 per cent of consumers regularly pay charges they consider unfair because they believe they have no practical alternative, while 31 per cent say they have become resigned to surprise charges because they seem impossible to avoid.
Plastic bag charges also featured among consumers’ frustrations, with 9 per cent saying they resent still being charged for bags at the checkout. A further 12 per cent said they feel cheated when charged extra for paying by card.
The survey found that 38 per cent of consumers had abandoned an online order after being faced with a surprise fee at checkout, while 52 per cent believe hidden fees and everyday “mug offs” have simply become part of life.
Energy standing charges topped the overall list of consumer frustrations, followed by shrinkflation, airport drop-off charges, the TV licence and council tax.
The research forms part of iD Mobile’s new Mugsville campaign, which aims to highlight the hidden fees, unexpected price increases and additional charges consumers encounter in everyday life.
The research estimates that hidden fees, unexpected price increases and other “mug offs” cost the average UK adult around £126 a year. Consumers said they would rather put that money towards saving (47%), household bills (30%) or an emergency fund (23%).
There were also notable regional differences in the estimated cost. Consumers in Scotland were found to be paying the highest “Mugsville Tax”, at £146.70 a year, followed by London at £139.30. The North West recorded the lowest estimated cost, at £106.60 – £19.40 below the UK average.