Shrinkflation: Difference between revisions

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== Shrinkflation ==

~~'''~~Shrinkflation''' is a deceptive practice where sellers unexpectedly reduce the size or volume of their products. This increases the cost per unit of product while keeping the marked price the same, making it an effective strategy for increasing profit margins.

Shrinkflation is ~~closely~~ related to '''skimpflation''', ~~which~~ instead ~~adulterates~~ or ~~cheapens~~ products ~~to reduce production cost~~.

'''Shrinkflation''' (from “shrink” + “inflation”; Dutch: ''krimpflatie'') is a corporate strategy where manufacturers reduce the volume or quantity of a product while maintaining the same or higher price. The packaging often remains unchanged, making the reduction imperceptible to consumers.

The term is related to '''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 ==

Shrinkflation occurs when a product’s packaging remains the same—or only slightly altered—but contains less product, without a corresponding drop in price. This makes the reduction less noticeable to consumers, effectively increasing the unit price.<ref name="Consumentenbond2025">{{cite web |title=Krimpflatie op krimpflatie: inhoud verpakkingen stapsgewijs steeds kleiner |url=https://www.consumentenbond.nl/acties-claims/nieuws/2025/krimpflatie |website=Consumentenbond |publisher=Consumentenbond |date=7 February 2025 |access-date=14 August 2025 |language=nl}}</ref>

== Historical Context ==

The concept of shrinkflation predates the term itself. Economists have documented cases as early as the 1970s, particularly during periods of high inflation when companies sought to avoid explicit price hikes.<ref>{{cite book |last=Gale |first=William G. |title=The Economic Effects of Inflation |publisher=Brookings Institution Press |year=1975 |isbn=9780815730411}}</ref>

The term '''shrinkflation''' gained popularity in the early 2010s, attributed to British economist Pippa Malmgren, who used it to describe hidden inflation in consumer goods.<ref>{{cite news |title=Shrinkflation is real – here’s why everything is getting smaller |url=https://www.theguardian.com/money/2017/nov/07/shrinkflation-real-smaller-packet-prices-inflation |work=The Guardian |date=7 November 2017 |access-date=14 August 2025}}</ref>

'''Skimpflation''' is a more recent term, first gaining widespread usage in the early 2020s. It emerged after the COVID-19 pandemic, when supply chain disruptions, labor shortages, and inflation prompted businesses to maintain prices but cut back on service quality or product standards.<ref name="NPR" />

In both cases, periods of economic stress and high inflation tend to accelerate the use of these strategies, as seen during the global inflation spike of 2021–2024.<ref>{{cite web |title=Shrinkflation and skimpflation: How inflation is reshaping consumer value |url=https://www.oecd.org/economy/shrinkflation-and-skimpflation.htm |publisher=OECD |access-date=14 August 2025}}</ref>

== Prevalence and Examples ==

In the Netherlands, the Consumentenbond (Consumers’ Association) has documented numerous cases of shrinkflation:<ref name="Consumentenbond2025" />

* '''Maaslander aged cheese''': Reduced from 200 g to 175 g, then to 150 g in 2023, and further to 140 g in late 2024, with prices remaining stable.

* '''Ariel washcapsules''': Fell from 14 capsules in 2020 to 10 capsules in 2025.

* '''Snack a Jacks Barbecue Paprika rice cakes''': Declined from 145 g to about 103 g over several years.

These incremental reductions (“shrink upon shrink”) often go unnoticed by consumers.

== 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.

== Industry Reaction ==

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" />

== Consumer Protection Efforts ==

The Consumentenbond has called for:<ref name="Consumentenbond2025" />

# '''Clear labeling''' when content is reduced.

# '''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>

# '''Engagement with industry''' to promote transparency, though supermarket chains and manufacturers have resisted mandatory disclosures.

== Related Phenomena ==

'''Skimpflation''' occurs when companies lower the quality of goods or services rather than the size or weight, while keeping prices unchanged or even increasing them.<ref name="NPR" /> Examples include cheaper ingredients in food products, reduced customer service staffing, or less frequent cleaning in hotels. Like shrinkflation, skimpflation effectively reduces consumer value without an obvious price change.

== International Comparisons ==

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>{{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>

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+== Shrinkflation ==
-'''Shrinkflation''' is a deceptive practice where sellers unexpectedly reduce the size or volume of their products. This increases the cost per unit of product while keeping the marked price the same, making it an effective strategy for increasing profit margins.
-Shrinkflation is closely related to '''skimpflation''', which instead adulterates or cheapens products to reduce production cost.
+'''Shrinkflation''' (from “shrink” + “inflation”; Dutch: ''krimpflatie'') is a corporate strategy where manufacturers reduce the volume or quantity of a product while maintaining the same or higher price. The packaging often remains unchanged, making the reduction imperceptible to consumers.
+The term is related to '''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 ==
+Shrinkflation occurs when a product’s packaging remains the same—or only slightly altered—but contains less product, without a corresponding drop in price. This makes the reduction less noticeable to consumers, effectively increasing the unit price.<ref name="Consumentenbond2025">{{cite web |title=Krimpflatie op krimpflatie: inhoud verpakkingen stapsgewijs steeds kleiner |url=https://www.consumentenbond.nl/acties-claims/nieuws/2025/krimpflatie |website=Consumentenbond |publisher=Consumentenbond |date=7 February 2025 |access-date=14 August 2025 |language=nl}}</ref>
+== Historical Context ==
+The concept of shrinkflation predates the term itself. Economists have documented cases as early as the 1970s, particularly during periods of high inflation when companies sought to avoid explicit price hikes.<ref>{{cite book |last=Gale |first=William G. |title=The Economic Effects of Inflation |publisher=Brookings Institution Press |year=1975 |isbn=9780815730411}}</ref>
+The term '''shrinkflation''' gained popularity in the early 2010s, attributed to British economist Pippa Malmgren, who used it to describe hidden inflation in consumer goods.<ref>{{cite news |title=Shrinkflation is real – here’s why everything is getting smaller |url=https://www.theguardian.com/money/2017/nov/07/shrinkflation-real-smaller-packet-prices-inflation |work=The Guardian |date=7 November 2017 |access-date=14 August 2025}}</ref>
+'''Skimpflation''' is a more recent term, first gaining widespread usage in the early 2020s. It emerged after the COVID-19 pandemic, when supply chain disruptions, labor shortages, and inflation prompted businesses to maintain prices but cut back on service quality or product standards.<ref name="NPR" />
+In both cases, periods of economic stress and high inflation tend to accelerate the use of these strategies, as seen during the global inflation spike of 2021–2024.<ref>{{cite web |title=Shrinkflation and skimpflation: How inflation is reshaping consumer value |url=https://www.oecd.org/economy/shrinkflation-and-skimpflation.htm |publisher=OECD |access-date=14 August 2025}}</ref>
+== Prevalence and Examples ==
+In the Netherlands, the Consumentenbond (Consumers’ Association) has documented numerous cases of shrinkflation:<ref name="Consumentenbond2025" />
+* '''Maaslander aged cheese''': Reduced from 200 g to 175 g, then to 150 g in 2023, and further to 140 g in late 2024, with prices remaining stable.
+* '''Ariel washcapsules''': Fell from 14 capsules in 2020 to 10 capsules in 2025.
+* '''Snack a Jacks Barbecue Paprika rice cakes''': Declined from 145 g to about 103 g over several years.
+These incremental reductions (“shrink upon shrink”) often go unnoticed by consumers.
+== 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.
+== Industry Reaction ==
+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" />
+== Consumer Protection Efforts ==
+The Consumentenbond has called for:<ref name="Consumentenbond2025" />
+# '''Clear labeling''' when content is reduced.
+# '''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>
+# '''Engagement with industry''' to promote transparency, though supermarket chains and manufacturers have resisted mandatory disclosures.
+== Related Phenomena ==
+'''Skimpflation''' occurs when companies lower the quality of goods or services rather than the size or weight, while keeping prices unchanged or even increasing them.<ref name="NPR" /> Examples include cheaper ingredients in food products, reduced customer service staffing, or less frequent cleaning in hotels. Like shrinkflation, skimpflation effectively reduces consumer value without an obvious price change.
+== International Comparisons ==
+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>{{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>