Next time you pick up a package of coffee or a pack of toilet paper, take a closer look. You might notice the package looks familiar, but what is inside has subtly diminished. This is “shrinkflation” in action, a pricing strategy used by manufacturers worldwide. By reducing product size instead of increasing final prices, companies take advantage of the psychology of shoppers who are more likely to notice a price hike than a slight reduction in size.
A pervasive trend
Despite complaints by consumers and recent government initiatives, the phenomenon shows little sign of abating. According to research by the British bank Barclays, in August, 8 out of 10 British consumers reported that the practice was hitting their finances. A quarter of them have even started to notice “double-dip shrinkflation”, where products go through two or more rounds of size reductions, without a corresponding price reduction. The top five most frequently cited products impacted are chocolate (57%), crisps (44%), packs of biscuits (41%), snack bars (36%) and sweets (36%).
