If your favorite candy or snack tastes a little off lately, you might have experienced skimflation: a cost-cutting strategy where companies swap out ingredients, cut quantities, or pass on fees to save money.
Economist Mark Rosa says it’s a growing trend that affects everything from chocolate bars to convenience store offerings.
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“Companies have made ingredient changes that some consumers notice right away,” Rosa says. "In other industries, restaurants may offer fewer condiments, gas stations may charge more for paying at the pump, and grocery items may use substitutes instead of the real thing.”
Rosa notes this strategy has historical precedent, citing the Coca-Cola formula change of the 1980s. Though it wasn't cost driven, public outcry forced a quick reversal.
Today, social media can amplify consumer reactions even faster, but Rosa warns that for the foreseeable future, some compromises on flavor and quality may be unavoidable.
“In many sectors, cost-cutting is part of survival,” he says. “We just may have to accept the differences on our palates for now.”