This article first appeared in US News.
Key Takeaways
Shrinkflation is a way for companies to avoid raising prices but still turn a profit. Rather than charge more, they give less.
While this method can give the illusion that prices are unchanged, research indicates that consumers are not just noticing, but are frustrated and demanding greater transparency.
A February 2024 Data for Progress survey found that 83% of those polled support a requirement for companies to label products that have been reduced in size or weight.
Even without government intervention, you can combat the impact of shrinkflation by knowing more about it and adopting a few smart shopping strategies.
Shrinkflation typically occurs during periods of heightened inflation. When the cost of producing goods rises, a company will need to make up the financial difference. Rather than increase the price, which can be off-putting to a shopper, they may decide to reduce the amount of product instead.
However, to a consumer, shrinkflation can seem like a sneaky sales tactic. The cost-cutting strategy has become such a concern that on Feb. 11, 2024, President Biden addressed the matter on X (formally Twitter). He affirmed that U.S. shoppers are noticing that some food and beverages are being sold in smaller increments but at the same price, and appealed to companies to halt the practice.
Shrinkflation is not just an American phenomenon, though. It’s happening across the world. According to a November 2023 Ipsos global poll, 46% of the respondents in 33 countries say they’ve noticed product sizes becoming smaller in their locations.
No matter where you are, therefore, awareness is key.
“If you’re looking at the package in the store, you might not even notice anything different, especially if they use the same branding,” says Julie Ramhold, senior staff writer at DealNews.com, a deal-comparison website.
When the product runs out faster than you remember, though, shrinkflation becomes obvious.
Chances are high you’ll see examples of shrinkflation at the drugstore and supermarket.
A 2023 YouGov survey found that more than half of consumers found snack foods such as chips, candy and nuts to be affected. And 46% of respondents found evidence of shrinkflation in dry goods like cereal, flour, sugar, pasta and rice, while 35% noticed it in paper goods and 34% percent noticed it in cleaning products.
Edgar Dworsky, a consumer advocate and lawyer in Somerville, Massachusetts, discovered clear evidence of shrinkflation among a wide span of retail products sold at grocery stores. In his December 2023 Consumer World newsletter, Dworsky reported the following examples that were sent to him by people across the country:
According to Dworsky, shrinkflation is pervasive and can impact any type of product. “It seems like they are always tinkering with the sizes of those things,” he says.
Look beyond grocery and drugstores, too, advises Ramhold. Many restaurants are selling smaller portion sizes because the cost of doing business is up.
The December 2023 Restaurant365 State Of The Industry survey revealed that more than 80% of the operators reported that their food expenses had increased and 89% said labor costs had increased.
So, if that burger looks a little skimpier now but the menu price hasn’t budged, shrinkflation took a bite out of your meal before you did.
You may not be able to do much about your favorite eatery downsizing its portions, but you can become a more savvy shopper for consumer goods. Here are some ways to spot and lessen the effect of shrinkflation:
Finally, when you do spot evidence of shrinkflation but are dedicated to a specific brand or product, you may want to notify the company about your displeasure.
Either email them at their corporate headquarters or reach out to their social media team on platforms such as Instagram, Facebook and X (Twitter).
While it may not result in a reversal to the original portion quality, if enough consumers complain, the company may think twice about further size reductions on other products.
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