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Shrinkflation is the practice of reducing the size or amount of a product in a given package while maintaining the same sticker price. It is a hidden form of inflation that allows companies to boost or protect their profit margins, particularly when facing rising production costs. For consumers, it means they are effectively paying more for less. According to a LendingTree analysis of nearly 100 household products from 2019 to 2024, a third have shrunk in size.
Shrinkflation relies on the fact that shoppers are more likely to pick up on a direct price increase than a subtle reduction in a product’s size. However, shrinkflation contributes to overall inflation. To keep your grocery bills from escalating, it’s important to understand how to spot and avoid being deceived by shrinkflation.
Key Points
• Shrinkflation involves reducing product size while maintaining or increasing price.
• Companies use shrinkflation to protect profit margins against rising costs.
• Shrinkflation is generally legal but can be deceptive to consumers.
• Tips to spot shrinkflation include checking receipts and unit prices.
• Shrinkflation has been ongoing for at least a decade, with recent spikes.
Why Does Shrinkflation Happen?
First, let’s take a step backwards. Why is it called “shrinkflation” anyway?
When companies shrink their products and thereby inflate the price, that’s shrinkflation. For instance, perhaps you notice that the 14-ounce bag of pretzels you used to buy is now 12 ounces…while the price has stayed the same.
Once you understand how it works, it’s pretty easy to understand why companies shrinkflate their products, as sneaky a tactic as it is. By offering less of their product at the same (or even a higher price), companies can protect their profit margins.
This, in turn, can help them battle rising production costs, competition from other companies, or simply drive more profits — which, in the end, is generally the main goal of every for-profit company.
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Examples of Shrinkflation
To avoid implicating any specific brand, let’s use an imaginary example to demonstrate how shrinkflation works and how you might notice it as a consumer.
• Say you’re at the grocery store, and you’re about to buy your favorite bottle of pomegranate juice. It’s a little pricey, but you love the taste — and besides, it’s good for you.
• You pick up the bottle, expecting to pay $8 for your typical 16 ounces. The bottle looks the same and costs the same, but it feels different in your hand. Still, you go ahead and purchase it.
• When you get home, you notice that the almost-empty bottle in your fridge is just a little bit bigger than the new bottle. When you look closely, you notice the new bottle actually has 14.5 ounces, not 16.
You’ve just been shrinkflated.
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Is Shrinkflation Temporary?
Shrinkflation isn’t new. According to research by the U.S. Government Accountability Office, product downsizing has been happening for over a decade. It spiked in 2015, was at its lowest during the pandemic years, and started trending up again in early 2022, amidst increasing inflation.
However, because shrinkflation usually occurs gradually, many consumers don’t even recognize it’s happening. Instead, they just slowly see their grocery bills and household expenses increase. If companies were transparent and sold the same amount of product at a higher price, you’d likely notice — and perhaps balk — while you were putting the item in your shopping cart.
With shrinkflation, companies can get a financial boost without (hopefully) triggering any consumer pushback. But careful, observant shoppers may still pick up on this sneaky business tactic.
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Is Shrinkflation Illegal?
Shrinkflation is generally legal. However, more than a dozen U.S. states and territories have recently instituted laws requiring the unit price be disclosed on products. This is helpful to consumers because when a product’s size decreases but its price stays the same, the unit price increases. The unit price label makes this increase more visible, allowing consumers to identify hidden price hikes and make informed choices.
Even without widespread labelling, customers appear to be catching on. According to an April 2025 survey by CivicScience, 81% of grocery shoppers say they’ve noticed shrinkflation recently.
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Tips for Noticing Shrinkflation
Here are some tips and tricks that can help you detect and stay ahead of shrinkflation.
1. Pay Attention to Your Receipts
Although plenty of us forego paper receipts entirely, keeping them can actually be very instructive, particularly when it comes to avoiding shrinkflation. Keeping and comparing receipts, especially for products you buy often, may help tip you off to shrinkflation more quickly than you’d otherwise notice on your own. (Plus, you may get a better picture of how much you actually spend on groceries, as opposed to how much you expect to.)
2. Make a Price-Inclusive Grocery List
If you’re really serious about beating the shrinkflation machine, grab that receipt you kept and make your next grocery list — with the approximate price you paid next to each item. That way, you’ll notice shrinkflation before it even happens as you’re about to put the item in your cart.
You can update this on a monthly basis or so to stay abreast of any shrinkflation moves, should companies roll out new, smaller-sized products for the same or a higher price.
3. Pay Attention to Price-Per-Unit When Shopping
One of the most effective ways to beat shrinkflation is to ignore the overall price of a product and focus on its unit price — the cost per ounce, pound, or item. While it may not be listed on the label, this information is typically printed on the shelf tag at the grocery store. Alternatively, you can quickly do the math yourself: Use your phone’s calculator to divide the product’s price by its quantity (for example, $3.60 /12 ounces = $0.30 per ounce). Choosing larger sizes, opting for store brands, or buying in bulk can result in a lower price per unit, which can help you spend less on food.
Should You Buy Shrinkflated Products?
Generally speaking, nobody likes to feel like they’re being deceived. But only you can decide whether or not the juice is worth the squeeze, so to speak, when it comes to buying from a company that employs this tactic.
• If you really, really love that brand of pomegranate juice (or any other product), you may just put up with it… and adjust your budget accordingly.
• If you strongly feel that this tactic is deceptive and it’s taking a substantial chunk out of your checking account, it may be time to find brands that don’t engage in this practice.
• You might decide to buy generic brands, or to shop at a warehouse or wholesale club store. There, you may benefit from economies of scale — and stock up on your favorite items before their prices potentially go up.
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The Takeaway
Shrinkflation is the practice of consumer goods being sold in smaller packages than in the past for the same or a higher price. In other words, your money doesn’t stretch as far. While frustrating, shrinkflation doesn’t have to significantly impact your finances. By being a vigilant shopper and adjusting your budget, you can continue to enjoy your favorite products. You can also make your money work harder by choosing a banking partner with favorable terms.
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FAQ
Why is shrinkflation allowed?
Shrinkflation is allowed because it isn’t inherently illegal. There isn’t a law saying companies must disclose packaging changes, nor are manufacturers or marketers claiming they are selling the same size as before. Therefore, as long as a package of “14 oz” truly contains “14 oz,” the practice is legal, even if the consumer is getting less for their money.
What is a real life example of shrinkflation?
One real example of shrinkflation in recent years is paper towels. On average, this product went from offering 165 sheets per package to offering 147 sheets, while maintaining a price of $3.99. As a result, the cost of each sheet increased from 24 cents to 27 cents.
How do you beat shrinkflation?
You can fight shrinkflation by becoming a more vigilant shopper: focus on unit prices and net weights on labels, compare prices between different brands (especially store brands), and shop smart by buying in bulk or stocking up during sales. Other strategies include cooking from scratch and using online resources like coupon apps.
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