Shrinkflation: When Goods Go on a Diet

So you grab your favourite chocolate bar – that one you've loved since childhood – excited for a treat, only to notice that it looks a bit smaller and feels a little lighter 🤔

That's shrinkflation in action: the sneaky tactic where companies reduce product sizes with no changes to the price tag.

But Why?

This happens because companies often face rising costs for ingredients, shipping, and packaging (thanks to inflation and economics). So instead of raising the prices and scaring away customers, they quietly reduce the product size instead. Same shelf price, smaller portion, and your wallet takes the hit without you realizing it 🤕

Let's Look at the BTS of Shrinkflation

• Between 2021-2023, nearly 30% of commonly purchased grocery products shrank in size – especially packaged foods, snacks, and household essentials (source: Statistics Canada).

• This downsizing explains why unit prices (cost per ounce, gram, or use) have increased, even though shelf prices appear unchanged (source: US BLS, 2023).

• Over 50% of US shoppers report noticing shrinkflation in grocery and household items (source: Statista, 2025).

Where You See It

Shrinkflation isn’t always obvious since companies often keep the same product packaging size. But here’s what you should watch out for:

• Candy bars that look smaller, and packets of chips that feel like they hold more air than actual chips!

• Cereal boxes that look the same in size but hold less.

• Household staples like body wash, shampoo, tissue paper, etc. with fewer uses per package.

Why It Matters

Shrinkflation slowly chips away at what your money can buy. A few grams less here, a slightly smaller roll of paper towel there – it might not feel like much at first, but it adds up over time. And before you know it, your budgets get tighter, savings shrink, and everyday purchases weigh heavier than ever.

How to Stay Ahead

• Check and compare unit prices (price per ounce, per gram, or per use)

• Compare current vs. old packaging sizes

• Try different brands or store labels for better value

Takeaway

Shrinkflation isn’t just about smaller products, it’s a reminder to be mindful about where your money goes. Paying attention to the little details, comparing your options, and being an informed shopper can turn a quiet loss into a smart win for your wallet ✨

💬 Curious about how consumer trends like shrinkflation impact broader economic behaviour? Reach out to Algorithm Research for more such updates!