Remember when Cadbury’s 200g was that big slab you could enjoy with big pieces of chocolatey goodness. You really felt you were getting double the value of the 100g bar. Today, neither are the size they used to be and while we get less chocolate we pay more money for the ‘same’ item.
Cadbury’s is not the only guilty party. You may have noticed that your 340ml can of Sprite is now 330ml, your ice-cream of 2 litre is now 1.8 litres (in some cases). A 1kg pack of frozen veg is now 750g and on and on it goes. You have to look far and wide for a box of tissues boasting a quantity of 200 as many brands have pulled back on the quantity and only pack 180 tissues.
Victims of producer tactics
We, as consumers, are victims of Shrinkflation. Shrinkflation is a seemingly innocuous tactic used by manufacturers to disguise rising costs. Instead of increasing prices, they reduce the size or quantity of their products while keeping the price the same. This means you’re paying the same amount for less, effectively getting a price increase.
Shrinkflation has been around for a while, but it’s becoming more common as companies grapple with rising costs of raw materials, labour, and transportation. It’s a way for them to maintain profit margins without scaring away customers with noticeable increases. This keeps the price adjustment modest and more ‘comfortable for the consumer.
The term “shrinkflation” was coined by British economist Pippa Malmgren in her 2009 book *Signals: The Breakdown of the Social Contract and the Rise of Geopolitics. While the practice itself predates the term, Malmgren gave it a name and brought wider attention to the phenomenon. Essentially, she observed and articulated what many consumers were experiencing: getting less for the same price.
Economic stress
Historically, shrinkflation has popped up during periods of economic stress. After World War II, for example, some companies reduced the size of their products rather than raise prices in the face of rising inflation. It’s a subtle way to manage costs without the immediate consumer backlash that a direct price increase might provoke. It’s also worth noting that sometimes, changes in product size are genuinely driven by improvements in manufacturing or packaging. These are often accompanied by clear communication from the manufacturer. Shrinkflation, by contrast, is often less transparent.
But don’t be fooled! Shrinkflation is a hidden form of inflation that can have a significant impact on your wallet. Over time, these small reductions can add up, meaning you’re getting less value for your money.
I know, having the terminology does not ease the pain of escalating prices and diminishing values, but at least, now you have a word for it: Shrinkflation.