Shrinkflation

Shrinkflation is the phenomenon where products decrease in size or quantity while their prices remain the same or increase. This practice allows manufacturers to maintain profit Margins without overtly raising prices, which might deter consumers.

Examples of shrinkflation include:

• Chocolate Bars: A popular brand of chocolate reduced its bar size from 150g to 140g, while the price stayed the same.
• Cereal Boxes: A well-known cereal brand decreased the number of servings in its box from 18 to 16, but kept the price unchanged.
• Household Products: A cleaning product that previously contained 500ml now only offers 450ml, yet the retail price remains the same.

Cases of shrinkflation are often noted during periods of inflation or rising production costs, as companies look for ways to minimize consumer backlash while preserving profit Margins.