Shrinkflation/Economics

  “Shrinkflation” shall for the purposes of this paper shall be defined as “Increasing the price of a product by shrinking its overall size rather than increase its price. Shrinkflation is a growing phenomenon in the United Kingdom and the EU as whole. This is disguised in the form of inflation which shall be defined as “a sustained increase in the general level of prices over time, commonly measured using an official price index such as the consumer or retail price index (Nellis and Parker, 2004). I will specifically focus within the U.K. confectionary market as this is the market most affected by this trend. It is also one of the sectors in which Shrinkflation is the most visible. As the trend has been growing rapidly in post Brexit U.K. and as the U.K formally leaves Europe this trend is expected to continue. I aim to investigate this phenomenon under the discourse of inflation as a topic of the larger study of contemporary capitalism. Specifcally within the uk confectionary sector as this is the market most affected by this trend.it is also one of the sectors in which Shrinkflation is most visible to the consumer. I shall explore the topic through the lens of behavioral economics and also aim to discover the keys factors that make producers choose Shrinkflation over Inflation. In order to add focus to the paper I have chosen to specifically focus on the U.K confectionary industry as this is the industry most affected by this reising phenomenon. Proposed Plan of Work The primary aim of the research is to develop an understanding of the keys factors that allow Shrinkflation to occur while identifying its dynamics within marketing and contemporary capitalism as a whole. By definition this will include the preceding market conditions, Consumer sentiment, Government policy, and Health trends. Researching, analyzing and combining information from a range of topics and subject areas will allow this body of work to present a more accurate and detailed account of Shrinkflation. The Research shall also aim to identify the factors that have enabled the emergence of this trend in the U.K. and if these factors can be used to predict where this trend will emerge next. (II) Research Questions 1. Are consumers less susceptible to a change in size vs price in the United Kingdom? 2. Why do producers choose to shrinkflate over inflate in the United Kingdom? 3. Who are the main winners and losers of this emerging trend in the United Kingdom? 4. Why do we see a higher rate of Shrinkflation in the confectionary food sector versus other sectors in the food industry.