Shrinkflation: Difference between revisions
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==Shrinkflation | {{Incomplete|Issue 1=Needs more examples|Issue 2=Needs more cleanup|Issue 3=Needs more elaboration on existing sections}} | ||
<!-- We still need to integrate more of what Wikipedia has covered in their article: | |||
https://en.wikipedia.org/wiki/Shrinkflation --> | |||
'''Shrinkflation''' (from “shrink” + “inflation”; Dutch: ''krimpflatie'') is a corporate strategy where manufacturers reduce the | '''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. | ||
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 | 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" /> | ||
==Historical context== | ==Historical context== | ||
The concept of shrinkflation predates the term itself | 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 name=":1">{{cite book |last=Gale |first=William G. |title=The Economic Effects of Inflation |publisher=Brookings Institution Press |year=1975 |isbn=9780815730411}}</ref><ref name=":3" /> However, '''shrinkflation''' as a term 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> | ||
After the COVID-19 pandemic caused supply chain disruptions, labor shortages, and rapid inflation, a sibling term known as '''Skimpflation''' gained widespread usage, as businesses were cutting back service quality and/or product standards in order to maintain prices.<ref name="NPR" /> | |||
For both of these problems, periods of economic stress and high inflation tend to accelerate the usage of these strategies, as demonstrated during the global inflation spike between 2021 and 2024.<ref name=":2">{{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== | ==Prevalence and examples== | ||
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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 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]]}}</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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==International comparisons== | ==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> | 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 /> | ||