What does Shrinkflation mean?

Getting less product for the same price

Shrinkflation is when a company decreases the size of their product but keeps the price the same. This sneaky way of increasing the price without actually doing so is a mix of the words ‘shrink’ (the decrease in product size) and ‘inflation’ (the increase in price). This is often a strategy used by businesses when they need to up their profits, maybe due to an increase in the cost of making the product, but don’t want to openly increase prices.

Consider this as an example. In 2022, a company called Bounty decided to reduce the number of sheets in their Huge kitchen roll pack from 150 to 130, but the price for the pack remained unchanged. This is a classic case of shrinkflation. The average consumer might not notice the reduction in sheets allowing Bounty to earn more from each pack sold without causing a fuss about price hikes.

Example for using ‘Shrinkflation’ in a conversation

Hey, have you noticed that the cereal boxes are smaller but the price is the same?

Yeah, it’s called shrinkflation. They’re charging us the same but giving us less product.

That’s sneaky. I guess they’re trying to make more money without us realizing it.

Exactly! It’s frustrating because we’re paying the same but getting less.