Ending Shrinkflation: How Singapore’s pricing transparency push sets a new standard

SINGAPORE: In a bold move to enhance pricing transparency, Singapore is now requiring supermarkets to display unit prices for groceries, allowing shoppers to compare costs more effectively.

This initiative, led by the Competition and Consumer Commission of Singapore (CCCS) in collaboration with the Consumers Association of Singapore (CASE), is set to be implemented across major supermarket chains such as NTUC FairPrice, Sheng Siong, Giant, Cold Storage, and Prime Supermarket. According to Malay Mail, this move aims to prevent misleading price adjustments and ensure consumers get fair value.

What is shrinkflation, and why does it matter?

Shrinkflation is when companies reduce product sizes but keep prices the same, making items effectively more expensive. This tactic allows businesses to manage rising costs without visibly increasing prices, making it harder for shoppers to notice.

In Singapore, some potato crisp brands have quietly reduced pack sizes from 180g to 150g while keeping prices unchanged, as reported by Channel News Asia. Similar trends have been seen worldwide, affecting everything from chocolate bars to household essentials.

How Singapore’s pricing transparency plan works

To address shrinkflation, Singapore’s new policy will require supermarkets to display unit pricing—showing the cost per litre, kilogram, or 100g—alongside the retail price. This allows consumers to compare products more effectively, preventing misleading price adjustments.

Singapore’s Minister for Trade and Industry, Mr Gan Kim Yong, stated that the government hopes this initiative will “improve price transparency, help consumers make choices to stretch their dollar and deter retailers from using pricing gimmicks”.

The system will first roll out in selected supermarkets, focusing on essentials like rice, cooking oil, meat, eggs, fruit, and vegetables. Consumers will be encouraged to provide feedback before full implementation.

The CCCS also emphasised that clear and consistent unit pricing would ultimately benefit both businesses and consumers by fostering greater trust in the marketplace. A spokesperson for CCCS stated that the initiative aligns with Singapore’s commitment to fair competition and consumer rights.

Will other countries follow?

Shrinkflation is not unique to Singapore—it is a global issue. Countries such as Australia and the United Kingdom have already implemented unit pricing laws to counter deceptive pricing strategies.

A study by the Michigan Journal of Economics found that shrinkflation negatively impacts consumer trust and brand loyalty, as shoppers often feel deceived when they realise they are paying more for less.

Singapore’s latest move positions it as a leader in Southeast Asia in addressing shrinkflation, and industry experts are watching closely to see whether neighbouring countries, such as Malaysia and Indonesia, will follow suit.

By implementing unit pricing, Singapore is taking a firm stance against shrinkflation and misleading pricing tactics. This transparency initiative aims to empower consumers, ensuring they receive fair value for their purchases.

With its structured approach and collaboration between government agencies and retailers, Singapore is setting a precedent that may influence international pricing policies, ultimately promoting fairer and more transparent consumer markets.