Shrinkflation

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Shrinkflation (from "shrink" and "inflation"; Dutch: krimpflatie), additionally referred to as package downsizing, weight-out, and price pack architecture, 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 customers.

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 customer purchasing power.

Definition and concept

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, often leading to the price remaining the same. 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.^{[citation needed (12 August 2026)]} Alternatively, the physical product can be modified to include more air, or in cases where the product arrives in a boxed state, the amount of product inside the packaging may be reduced quietly without significant updates to the packaging.^{[citation needed (12 August 2026)]}

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.^{[citation needed (12 August 2026)]} However, shrinkflation as a term gained popularity in the early 2010s, attributed to American economist Pippa Malmgren, who used it to describe hidden inflation in consumer goods.

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.

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.^{[citation needed (12 August 2026)]}

Prevalence and examples

In the Netherlands, the Consumentenbond (Consumers' Association) has documented numerous cases of shrinkflation:

• 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.

In one attempt to distract customers from rising shrinkflation, Cadbury stated "Our Eggs Aren’t Smaller, You Are Bigger", and after customers were reporting progressive shrinkage year-over-year for the eggs, an episode of Late Night With Conan O'Brien demonstrated that these eggs were in fact shrinking.

In 2026 a TikTok video went viral about a Mars bar that was found from 1991, showing a Mars bar that is significantly bigger than current Mars bars. The bar was 62.5 grams and cost between 25 and 35 pence at the time. The current price of a Mars bar in England is around 1.20 pound, but the price of the 1991 bar corrected for inflation would be around 75 pence — a sixty percent price hike. If the bar would have been sixty percent larger this would explain the price difference, but the current bar only weighs 40 grams. The length was only changed from 10 cm to 9 cm which is hiding the weight change.

The Mars bar got ten percent shorter, while the weight was reduced by thirty-six percent and became sixty percent more expensive.

Consumer response and complaints

In 2024, the Consumentenbond's Meldpunt Eerlijk (Fair Complaints Line) received about 250 reports related to shrinkflation. 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.

Consumer protection efforts

The Consumentenbond has called for:

1. Clear labeling when content is reduced.
2. Public tracking of shrinkflation examples.
3. Legal action against deceptive practices, potentially leading to fines of up to €900,000.
4. 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. Examples include cheaper ingredients in food products, reduced customer service staffing, or less frequent cleaning in hotels. Like shrinkflation, skimpflation effectively reduces customer value without an obvious price change.

International comparisons

In France, Carrefour labels products whose contents have been reduced without a price drop. Consumer organizations in other countries, such as the UK and the USA, have also raised awareness about shrinkflation and skimpflation.^{[citation needed (12 August 2026)]}