Skimpflation: When Food Gets Worse – But Not Cheaper

Whether it’s ketchup, cheese, or chocolate spread – more and more manufacturers are changing the recipes of their products, often to the detriment of consumers. The phenomenon is known as skimpflation. Many popular branded products are affected – and while the quality decreases, the price usually stays the same.

The term combines “skimpy” and “inflation” and refers to the practice of reducing product quality in response to rising production costs. Since the pandemic, many consumers have noticed that the quality of food has declined – both in supermarkets and restaurants. The main reason: increasing raw material prices.

Cheaper Ingredients, Same Packaging

According to the Hamburg Consumer Center, many manufacturers are replacing high-quality ingredients with cheaper alternatives – for example, hazelnuts with flavoring or butter with vegetable fats. These changes are often barely noticeable on the packaging. While companies save on production costs, they typically do not lower the retail price. For consumers, this means: same product, lower quality.

Numerous Products Affected (in Germany)

Several recent examples from the German market include Netto’s “Lieblings Nuss-Nougat-Creme”, where the hazelnut content dropped from 20% to 13%. Kaufland's private-label ketchup now contains less concentrated tomato paste. Knorr’s lemon-butter sauce now requires consumers to add their own butter at home. The list of affected products is growing steadily.

Legal – But Not Transparent

This practice is legal as long as the updated ingredients are listed correctly on the packaging. However, consumer advocates criticize the lack of transparency. Labels like “new recipe” are often misleading. Only a direct comparison of the old and new ingredient lists reveals the difference – and hardly anyone keeps old packaging for reference.

Skimpflation and Shrinkflation – A Double Problem

Skimpflation often goes hand in hand with shrinkflation: not only does the quality decline, but package sizes also shrink while prices remain unchanged. That’s why German consumer protection agencies are calling for clearer labeling of recipe changes – similar to how changes in packaging size are handled.