Shrinkflation: Difference between revisions
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'''Shrinkflation''' (from “shrink” + “inflation”; Dutch: ''krimpflatie''), additionally referred to as also known as '''package downsizing''', '''weight-out''',<ref name=":0">{{cite web |last=Milligan |first=Brian |date=Jul 24, 2017 |title=More than 2,500 products subject to shrinkflation, says ONS |url=https://www.bbc.co.uk/news/business-40703866 |url-status=dead |archive-url=https://web.archive.org/web/20170724104410/http://www.bbc.co.uk/news/business-40703866 |archive-date=2017-07-24 |access-date=Aug 31, 2025 |website= |publisher=[[BBC News]]}}</ref> and '''price pack architecture''',<ref>{{cite web |author=J. Edward Moreno |date=2024-05-31 |title=What's a fancy name for shrinkflation? |url=https://www.nytimes.com/2024/05/31/business/what-is-price-pack-architecture.html |access-date=Aug 31, 2025 |publisher=[[NY Times]]}}</ref> is a corporate strategy where manufacturers reduce the size or quantity of a product while maintaining an equal or higher price. The packaging often remains unchanged, making the reduction nearly imperceptible to consumers. | '''Shrinkflation''' (from “shrink” + “inflation”; Dutch: ''krimpflatie''), additionally referred to as also known as '''package downsizing''', '''weight-out''',<ref name=":0">{{cite web |last=Milligan |first=Brian |date=Jul 24, 2017 |title=More than 2,500 products subject to shrinkflation, says ONS |url=https://www.bbc.co.uk/news/business-40703866 |url-status=dead |archive-url=https://web.archive.org/web/20170724104410/http://www.bbc.co.uk/news/business-40703866 |archive-date=2017-07-24 |access-date=Aug 31, 2025 |website= |publisher=[[BBC News]]}}</ref> and '''price pack architecture''',<ref>{{cite web |author=J. Edward Moreno |date=2024-05-31 |title=What's a fancy name for shrinkflation? |url=https://www.nytimes.com/2024/05/31/business/what-is-price-pack-architecture.html |access-date=Aug 31, 2025 |publisher=[[NY Times]] |archive-url=http://web.archive.org/web/20250930180629/https://www.nytimes.com/2024/05/31/business/what-is-price-pack-architecture.html |archive-date=30 Sep 2025}}</ref> is a corporate strategy where manufacturers reduce the size or quantity of a product while maintaining an equal or higher price. The packaging often remains unchanged, making the reduction nearly imperceptible to consumers. | ||
Related to shrinkflation is '''skimpflation''', where the ''quality'' of a product or service is reduced instead of its size or weight, without a corresponding drop in price. Both practices are considered forms of “hidden inflation” that affect consumer purchasing power.<ref name="NPR">{{cite news |last=Garcia |first=Adrian Ma and Darian Woods |title=Skimpflation is hitting your favorite services |url=https://www.npr.org/2021/10/19/1047035078/skimpflation-services-prices |work=NPR |date=19 October 2021 |access-date=14 August 2025}}</ref> | Related to shrinkflation is '''skimpflation''', where the ''quality'' of a product or service is reduced instead of its size or weight, without a corresponding drop in price. Both practices are considered forms of “hidden inflation” that affect consumer purchasing power.<ref name="NPR">{{cite news |last=Garcia |first=Adrian Ma and Darian Woods |title=Skimpflation is hitting your favorite services |url=https://www.npr.org/2021/10/19/1047035078/skimpflation-services-prices |work=NPR |date=19 October 2021 |access-date=14 August 2025}}</ref> | ||
==Definition and concept== | ==Definition and concept== | ||
Shrinkflation is defined by a rise in the general price level of goods per unit of weight or volume in proportion to the contents within a package diminishing,<ref name=":1" /> often leading to the price remaining the same.<ref name="Consumentenbond2025">{{cite web |date=7 February 2025 |title=Krimpflatie op krimpflatie: inhoud verpakkingen stapsgewijs steeds kleiner |url=https://www.consumentenbond.nl/acties-claims/nieuws/2025/krimpflatie |access-date=14 August 2025 |website=Consumentenbond |publisher=Consumentenbond |language=nl}}</ref> In many scenarios, companies will redesign the packaging to hide these flaws, such as making the bottom more concave, or giving the packaging an hourglass-like shape that can slowly get more exaggerated.<ref name=":2" /> Alternatively, the physical product can be modified to include more air,<ref name=":0" /> or in cases where the product arrives in a boxed state, may quietly reduce the amount of product inside the packaging without significantly updating the packaging.<ref name=":2" /> | Shrinkflation is defined by a rise in the general price level of goods per unit of weight or volume in proportion to the contents within a package diminishing,<ref name=":1" /> often leading to the price remaining the same.<ref name="Consumentenbond2025">{{cite web |date=7 February 2025 |title=Krimpflatie op krimpflatie: inhoud verpakkingen stapsgewijs steeds kleiner |url=https://www.consumentenbond.nl/acties-claims/nieuws/2025/krimpflatie |access-date=14 August 2025 |website=Consumentenbond |publisher=Consumentenbond |language=nl |archive-url=http://web.archive.org/web/20251112133201/https://www.consumentenbond.nl/acties-claims/nieuws/2025/krimpflatie |archive-date=12 Nov 2025}}</ref> In many scenarios, companies will redesign the packaging to hide these flaws, such as making the bottom more concave, or giving the packaging an hourglass-like shape that can slowly get more exaggerated.<ref name=":2" /> Alternatively, the physical product can be modified to include more air,<ref name=":0" /> or in cases where the product arrives in a boxed state, may quietly reduce the amount of product inside the packaging without significantly updating the packaging.<ref name=":2" /> | ||
==Historical context== | ==Historical context== | ||
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These incremental reductions (“shrink upon shrink”) often go unnoticed by consumers. | These incremental reductions (“shrink upon shrink”) often go unnoticed by consumers. | ||
In one attempt to distract consumers from rising shrinkflation, Cadbury | In one attempt to distract consumers from rising shrinkflation, Cadbury stated “Our Eggs Aren’t Smaller, You Are Bigger”, and after consumers were reporting progressive shrinkage year-over-year for the eggs,<ref>{{Cite news |date=Apr 8, 2007 |title=Cadbury: Our Eggs Aren't Smaller, You Are Bigger |url=https://consumerist.com/consumer/cadbury/cadbury-our-eggs-arent-smaller-you-are-bigger-250559.php |url-status=dead |archive-url=https://web.archive.org/web/20070510205939/https://consumerist.com/consumer/cadbury/cadbury-our-eggs-arent-smaller-you-are-bigger-250559.php |archive-date=May 10, 2007 |access-date=Aug 31, 2025 |work=The Consumerist}}</ref><ref>{{Cite web |last=TheMuggler |date=Apr 7, 2007 |title=The Cadbury Creme Egg Conspiracy |url=http://www.yesbutnobutyes.com/archives/2007/04/the_cadbury_cre.html |archive-url=https://web.archive.org/web/20070510074810/http://www.yesbutnobutyes.com/archives/2007/04/the_cadbury_cre.html |archive-date=May 10, 2007 |access-date=Aug 31, 2025 |website=Yes but No but Yes}}</ref> an episode of ''Late Night With Conan O'Brien'' demonstrated that these eggs were in-fact shrinking.<ref>{{Cite web |last=O'Brien |first=Conan |date=Apr 1, 2021 |title=B.J. Novak Proves Cadbury Eggs Are Getting Smaller - "Late Night With Conan O'Brien" |url=https://www.youtube.com/watch?v=TlXLCrzpToo |access-date=Aug 31, 2025 |website=[[YouTube]] |archive-url=https://preservetube.com/watch?v=TlXLCrzpToo |archive-date=23 Feb 2026}}</ref> | ||
==Consumer response and complaints== | ==Consumer response and complaints== | ||
In 2024, the Consumentenbond’s ''Meldpunt Eerlijk'' (Fair Complaints Line) received about '''250 reports''' related to shrinkflation.<ref name="Consumentenbond2025" /> Although fewer than in previous years, this may reflect that most content reductions had already been implemented or were subtle enough to escape attention. | In 2024, the Consumentenbond’s ''Meldpunt Eerlijk'' (Fair Complaints Line) received about '''250 reports''' related to shrinkflation.<ref name="Consumentenbond2025" /> Although fewer than in previous years, this may reflect that most content reductions had already been implemented or were subtle enough to escape attention. | ||
==Industry reaction== | ==Industry reaction<!-- Might not be a good section to include -->== | ||
Manufacturers often state that retailers set prices, while they only recommend retail pricing. Some claim reductions result from product improvements or changing consumer needs—a rationale the Consumentenbond rejects.<ref name="Consumentenbond2025" /> | Manufacturers often state that retailers set prices, while they only recommend retail pricing. Some claim reductions result from product improvements or changing consumer needs—a rationale the Consumentenbond rejects.<ref name="Consumentenbond2025" /> | ||
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#'''Clear labeling''' when content is reduced. | #'''Clear labeling''' when content is reduced. | ||
#'''Public tracking''' of shrinkflation examples. | #'''Public tracking''' of shrinkflation examples. | ||
#'''Legal action''' against deceptive practices, potentially leading to fines of up to €900,000.<ref>{{cite news |title=Consumentenbond wil krimpflatie bij de rechter aanpakken |url=https://www.rtl.nl/nieuws/rtl-z/artikel/5414904/consumentenbond-wil-krimpflatie-bij-de-rechter-aanpakken |work=RTL Z |date=18 October 2023 |access-date=14 August 2025 |language=nl}}</ref> | #'''Legal action''' against deceptive practices, potentially leading to fines of up to €900,000.<ref>{{cite news |title=Consumentenbond wil krimpflatie bij de rechter aanpakken |url=https://www.rtl.nl/nieuws/rtl-z/artikel/5414904/consumentenbond-wil-krimpflatie-bij-de-rechter-aanpakken |work=RTL Z |date=18 October 2023 |access-date=14 August 2025 |language=nl |archive-url=http://web.archive.org/web/20240807031836/https://www.rtl.nl/nieuws/rtl-z/artikel/5414904/consumentenbond-wil-krimpflatie-bij-de-rechter-aanpakken |archive-date=7 Aug 2024}}</ref> | ||
#'''Engagement with industry''' to promote transparency, though supermarket chains and manufacturers have resisted mandatory disclosures. | #'''Engagement with industry''' to promote transparency, though supermarket chains and manufacturers have resisted mandatory disclosures. | ||
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In France, Carrefour labels products whose contents have been reduced without a price drop.<ref>{{cite news |title=Carrefour warns shoppers over shrinkflation |url=https://www.bbc.com/news/business-66760551 |work=BBC News |date=8 September 2023 |access-date=14 August 2025}}</ref> Consumer organizations in other countries, such as the UK and the US, have also raised awareness about shrinkflation and skimpflation.<ref name=":3">{{cite news |title=Shrinkflation and skimpflation: Are we getting less for our money? |url=https://www.cnn.com/2023/07/15/business/shrinkflation-skimpflation-prices |work=CNN Business |date=15 July 2023 |access-date=14 August 2025}}</ref> | In France, Carrefour labels products whose contents have been reduced without a price drop.<ref>{{cite news |title=Carrefour warns shoppers over shrinkflation |url=https://www.bbc.com/news/business-66760551 |work=BBC News |date=8 September 2023 |access-date=14 August 2025}}</ref> Consumer organizations in other countries, such as the UK and the US, have also raised awareness about shrinkflation and skimpflation.<ref name=":3">{{cite news |title=Shrinkflation and skimpflation: Are we getting less for our money? |url=https://www.cnn.com/2023/07/15/business/shrinkflation-skimpflation-prices |work=CNN Business |date=15 July 2023 |access-date=14 August 2025}}</ref> | ||
== References == | ==References== | ||
<references /> | <references /> | ||
[[Category:Common terms]] | |||