Shrinkflation: How Companies Make Consumers Pay More for Less

19:05

By: Azzat Manal

Shrinkflation: How Companies Make Consumers Pay More for Less

Consumers around the world are increasingly facing a subtle form of price pressure known as shrinkflation. Instead of raising prices directly, manufacturers reduce the quantity, weight or size of a product while keeping its price unchanged. Although the price tag may look the same, shoppers end up paying more for each gram, litre or individual item.

The practice is not new. Businesses have long adjusted product sizes during periods of economic uncertainty, rising production costs and inflation. According to Sofia Glavina, an assistant professor at the Peoples’ Friendship University of Russia, the approach became more widespread in the decades following the Second World War, particularly during periods of economic disruption. The term “shrinkflation” gained broader public attention in the 2010s, as consumers became more aware of changes in everyday products.

One reason the strategy can be effective is that shoppers often react more strongly to an explicit price increase than to a modest reduction in package size. When a familiar product remains at the same price, consumers may not immediately notice that its value has changed. For manufacturers, reducing quantities can therefore appear less disruptive than increasing prices, especially when customers are sensitive to even small changes in household spending.

Shrinkflation can take several forms. A packet may contain fewer biscuits, a chocolate bar may become lighter, or a bottle may hold less liquid without a corresponding change in its price. A related practice, sometimes described as “quality shrinkflation,” involves reducing the quality or performance of a product while maintaining its price and quantity. In food production, changes to ingredients or nutritional composition may also affect consumers, making transparent labelling particularly important.

Some cases demonstrate that public pressure can influence corporate decisions. In 2016, Mondelez International changed the distinctive shape of its Toblerone chocolate bar in the United Kingdom, increasing the gaps between its triangular pieces to reduce its weight while retaining its price. The change triggered widespread criticism. The company later restored the original shape for certain products, although the price was higher.

Regulation can also play a role. Russia revised its GOST standards in 2023 to establish specified package sizes for certain socially important goods, including milk and buckwheat. Such measures are intended to make product quantities more predictable and limit arbitrary changes in standard packaging. Their effectiveness, however, depends on the scope of the rules and how consistently they are enforced.

Larger packages can create a different set of problems. Buying in bulk may reduce the unit price, but it does not always produce savings in practice. Products that spoil quickly or absorb moisture, including some grains and spices, may deteriorate before they are fully used. Oversized packages also require more storage space and can encourage households to purchase more than they need, increasing the risk of waste and unnecessary spending.

Packaging itself can further complicate comparisons. A container with a thick base, unusually heavy walls or a recessed bottom may look larger than the quantity it actually holds. While some designs serve legitimate practical purposes, packaging that gives a misleading impression can undermine consumer confidence and damage a brand’s reputation. In an environment where shoppers readily share product comparisons on social media, perceived deception can carry commercial consequences.

The same principle extends beyond food. In 2020, Apple removed wired earphones and power adapters from the boxes of new iPhones, presenting the decision partly as an environmental measure. Other technology manufacturers adopted similar approaches, requiring some customers to purchase accessories separately. In the automotive sector, General Motors reduced the powertrain warranty on many 2016 model-year vehicles from 100,000 miles to 60,000 miles, changing the level of coverage offered to buyers.

Consumers can protect themselves by checking the net weight, volume and number of items shown on packaging rather than relying on a product’s appearance or its headline price. Comparing the unit price displayed on shelf labels, where available, can reveal when a familiar item has become more expensive in real terms. Clear labelling, fair competition and informed purchasing decisions remain important tools for ensuring that changes in product size or quality do not go unnoticed.