What is stretchflation?
Following the outcry over shrinkflation, a new commercial trend has emerged in supermarkets: stretchflation. Unlike shrinkflation, stretchflation combines the notions of inflation and “stretching”.
In effect, stretchflation adds a small extra quantity to the product while increasing its price. However, the price increase is not often related to the addition of ingredients.
The origins of stretchflation
Stretchflation emerged as a reaction to the current economic situation. This marketing strategy was adopted by manufacturers to meet a number of challenges:
- Inflationary pressure: Widespread inflation is weighing heavily on companies.
- Rising costs: Prices of raw materials, energy and labor have skyrocketed.
- Strong competition: The rise of e-commerce has intensified competition.
- Supply chain disruption: Global disruptions have put a strain on distribution and production.
- Advanced marketing strategies: Companies compete with each other to attract consumers.
A new tactic from the food industry
This increase in grammage is prominently displayed on the packaging, giving consumers the impression that they’re getting better value. Stretchflation increases product quantity while justifying a price increase.
However, this strategy often masks a disproportionate increase in price per kilogram. Consumers, who are less attentive to the real price per unit, can be deceived by this tactic.
The consequences for consumers
So, while the increased product quantity may seem to justify the price rise, in reality, actual inflation is often much higher than initially perceived. Stretchflation therefore represents a new challenge for transparency and honesty in food pricing.
For consumers, it’s becoming crucial to pay close attention to prices per kilogram or liter, rather than the price on the label. By comparing these data, they can better assess whether a price increase is justified or an attempt at manipulation. This vigilance is essential to avoid the pitfalls of stretchflation, and to make more informed choices in their day-to-day purchases.
