Shrinkflation FAQ
Everything you need to know about shrinkflationâwhat it is, why it happens, and how to fight back.
What is shrinkflation?
Shrinkflation is when companies reduce the size or quantity of a product while keeping the price the same (or even raising it). The term combines 'shrink' and 'inflation' because the effect on consumers is the same as a price increaseâyou get less for your money.
Is shrinkflation illegal?
No, shrinkflation is not illegal in most countries. As long as the package accurately displays the net weight or quantity, companies are free to change product sizes. However, some consumer advocacy groups are pushing for laws requiring companies to notify consumers of size changes.
Why do companies use shrinkflation instead of raising prices?
Research shows consumers are more sensitive to price increases than quantity decreases. A 10% price hike is noticed immediately and may cause shoppers to switch brands. A 10% size reduction often goes unnoticed. Companies use shrinkflation to maintain profit margins while avoiding consumer backlash.
How can I spot shrinkflation?
The best way is to check unit prices (price per ounce or per count) on shelf tags. Also watch for packaging redesigns with phrases like 'New Look!' which often accompany size reductions. Take photos of products you buy regularly and compare sizes over time.
Does shrinkflation show up in inflation statistics?
Partially. The Bureau of Labor Statistics does adjust for package size changes when calculating the Consumer Price Index (CPI). However, this adjustment happens behind the scenesâconsumers don't see it reflected on price tags, which is why shrinkflation feels like 'hidden' inflation.
What products are most affected by shrinkflation?
Shrinkflation is common across all grocery categories, but especially prevalent in: snacks and chips, breakfast cereals, ice cream and dairy, paper products (toilet paper, paper towels), candy and chocolate, and beverages. Basically, any product where small size changes aren't immediately obvious.
What's the difference between shrinkflation and skimpflation?
Shrinkflation reduces the quantity of a product. Skimpflation reduces the qualityâusing cheaper ingredients, thinner materials, or less durable construction while keeping the size and price the same. Both achieve the same goal: giving consumers less value for their money.
Can I do anything about shrinkflation?
Yes! Shop by unit price rather than package price. Switch to brands or store brands that haven't shrunk as much. Buy in bulk when possible. Report shrinkflation to databases like ShrinkWatch to help other consumers. And consider contacting companies directlyâpublic pressure can influence corporate decisions.
When did shrinkflation start?
Shrinkflation has existed for decades, but it accelerates during periods of high inflation. Notable waves occurred in the 1970s, 2008-2011, and 2021-present. The practice became more sophisticated over time, with companies using package redesigns and marketing to disguise size reductions.
Are store brands affected by shrinkflation too?
Yes, but often less aggressively than name brands. Store brands (private labels) typically follow national brand shrinkflation with a delay, and sometimes maintain original sizes longer to differentiate themselves. Comparing unit prices between store and name brands is always worthwhile.
How much money does shrinkflation cost the average consumer?
Estimates vary, but studies suggest shrinkflation can add 10-20% to effective grocery costs beyond what official inflation numbers show. For a family spending $800/month on groceries, that could mean $80-160 in hidden costs monthlyânearly $1,000-2,000 per year.
Why don't companies just raise prices honestly?
Psychology and competition. Studies show a $4.99 price point sells significantly better than $5.29, even if the difference is small. Companies also fear being the first to raise prices in a competitive market. Shrinkflation lets them maintain price points while quietly reducing costs.
What is a 'grocery shrink ray'?
The 'grocery shrink ray' is a humorous term (popularized by the Consumerist blog) for the phenomenon of products getting smaller over time. It imagines a ray gun that companies use to shrink productsâcapturing the frustration consumers feel when they notice their favorite products have gotten smaller.
How does ShrinkWatch help?
ShrinkWatch is a community-powered database that tracks and documents shrinkflation as it happens. Users can report products they've noticed shrinking, browse confirmed cases, and make more informed shopping decisions. By making shrinkflation visible, we help hold companies accountable.
Should I stock up on products before they shrink?
If you notice a 'new packaging' announcement or spot early signs of shrinkflation, buying a few extra of the old size can save money. However, don't go overboardâproducts expire, storage costs money, and companies may shrink again. The best long-term strategy is becoming a unit-price-conscious shopper.
Have Another Question?
Can't find what you're looking for? Check our blog for in-depth articles or report shrinkflation you've spotted.