Canadian Consumers Face Shrinkflation as Packages Downsize
Canadians have long suspected they were paying the same prices for less food at grocery stores, a suspicion now confirmed by mounting evidence. Numerous studies and media investigations have consistently demonstrated this trend, revealing what’s commonly known as “shrinkflation.” An investigation by Community Researchers, a Toronto-based non-profit organization, has recently solidified these concerns, revealing that Canadian manufacturers have been systematically downsizing product packages over the past five years, a practice often employed to mitigate rising costs during inflationary periods. This isn’t simply a matter of perception; the data speaks for itself.
The report’s findings are striking. Over the five-year period from 2019 to 2024, 12 out of 60 products analyzed across 20 different product categories experienced shrinkflation. These products, spanning categories like beverages, fruits, whole grains, and seafood, had witnessed a reduction in their net size. Notably, the research highlighted several specific products as particularly susceptible to this practice. Fruit pouches made by Gogo Squeeze, frozen chicken bites, and chocolate biscuits were identified as “the worst offenders,” with some pouches shrinking by as much as 25 per cent since 2019. The investigation also revealed that the highest concentration of shrinkflation occurred within the baby and toddler food category, alongside poultry, cooking oils, processed meats, and items containing higher amounts of sugar and fat.
This trend isn’t simply a reflection of rising input costs; it exposes a more complex pricing strategy. The core of the issue lies in the manufacturers’ ability to maintain retail prices while subtly reducing product volumes. As Sylvain Charlebois, Director of the Agri-Food Analytics Lab at Dalhousie University, explains, "When you buy a shrinkflated product, you are likely buying an illusion, and that illusion comes from over-packaging.” This deliberate tactic, often referred to as “the snack tax,” further complicates matters. Certain food items, based on their quantity or how they’re prepared and packaged, are now classified as “snacks” for GST/HST purposes, while most “food” items are exempt. This classification discrepancy results in consumers paying more due to the added tax, effectively creating a hidden cost increase.
The issue has prompted calls for greater transparency and regulatory action. While the department of Innovation, Science and Economic Development Canada (ISED) has funded several research projects aimed at understanding the extent of shrinkflation and its impact on consumers, concrete measures have been slow to materialize. The New Democratic Party tabled a bill in the House of Commons earlier this year, seeking to establish a national framework for standardized unit pricing and improved public awareness about shrinkflation. This proposed legislation, if enacted, would represent a significant step towards holding manufacturers accountable and empowering consumers with the information necessary to make informed purchasing decisions. Furthermore, the federal government has created a grocery code of conduct with the intention of increasing transparency and fairness across the industry, and to make data on food prices more accessible to the public. This code is currently slated to take effect on June 1, 2025.
However, until regulatory changes are implemented, consumers are advised to adopt a vigilant “caveat emptor” – a Latin phrase meaning “let the buyer beware.” The investigation’s findings underscore the importance of carefully scrutinizing product packaging sizes and understanding the potential for hidden pricing strategies. Consumers are encouraged to support investigative journalism and to demand greater transparency from food manufacturers. To remain informed about the latest developments in this ongoing discussion, interested parties are encouraged to bookmark the Financial Post’s website and subscribe to our newsletters by registering here.
