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Shrinkflation: How Hidden Inflation Shrinks Your Favorite Products

Sep 26, 2024 | coastalblooms42

Shrinkflation. You’ve probably encountered it more times than you can count—reaching for your favorite cereal or a bag of chips, only to realize you’ve been served a smaller portion, despite paying the same price. It’s a frustrating little magic trick that brands pull, and in recent years, it’s been happening more often.

shrinkflation

What is Shrinkflation?

Shrinkflation is the tactic where companies reduce the size or quantity of a product without lowering its price. You think you’re getting the same value, but you’re really paying more per ounce, gram, or unit. The packaging might look the same, but the contents have shrunk. Brands bank on the fact that most people won’t notice a few ounces missing from a box of crackers or a slight reduction in toilet paper rolls. It’s inflation in disguise, and while it helps companies survive rising production costs, it leaves you, the consumer, getting less bang for your buck.


How It Works

Shrinkflation is a crafty alternative to outright price hikes. Instead of sticking a higher price tag on products and risking the wrath of cost-conscious consumers, companies keep prices stable but trim down what you’re getting. The cereal box on the shelf? Same height, same width, but fewer flakes inside. That bottle of sports drink? Slimmed down just enough that you’ll finish it faster but won’t immediately feel cheated.


Industries Hit Hard by Shrinkflation

Shrinkflation is rampant in the food and beverage industry—snacks, ice cream, cereals, and drinks. But the trend doesn’t stop there. Household goods like toilet paper and paper towels are also prime targets, along with personal care products and even pet food. Anywhere a brand can subtly cut back without causing too much consumer backlash, shrinkflation creeps in.


Notable Examples

Shrinkflation hits all kinds of everyday products, from food to household goods. Some standout examples:

  • Cereals: General Mills cut the size of their “Family Size” boxes of Cheerios from 19.3 ounces to 18.1 ounces.
  • Snacks: Doritos went from 9.75 ounces to 9.25 ounces, while Hot Tamales candy packs shrank from 5 ounces to 4.25 ounces.
  • Beverages: Gatorade redesigned their bottles, shaving off 4 ounces, from 32 to 28.
  • Paper Products: Charmin’s toilet paper rolls lost sheets, while Sparkle paper towels trimmed six sheets per roll, dropping from 116 to 110.

How to Spot Shrinkflation

If you’re tired of falling for shrinkflation’s sneaky tactics, there are a few things you can do:

  • Check product sizes: Compare the weight or volume of what you’re buying to previous purchases or similar products.
  • Look at the price per unit: Most stores display this, and it’s a solid way to detect when you’re being shortchanged.
  • Watch for packaging redesigns: A new bottle shape or box design might be hiding the fact that you’re getting less product.

Combating Shrinkflation

To combat shrinkflation, you can take a few smart steps:

  • Buy in Bulk: Larger packages often offer better value and are less likely to shrink.
  • Look for Cash Back Programs: Use loyalty programs to save on purchases and offset shrinkflation’s impact.
  • Consider Store Brands: These often offer more consistent value and are less prone to shrinkflation.
  • Shop Around: Compare prices across stores, and take advantage of sales to get the most bang for your buck.

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The Federal Reserve, Interest Rates, and the Economy
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Stock Market Analysis 9/25/2024

Categories: Financial Foundations + Money Management Tags: inflation + shrinkflation

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