Shrinkflation: Difference between revisions

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>

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>

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>   

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>

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

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

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.

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" />

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

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

'''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.

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>