What is shrinkflation?
The sneaky tactic manufacturers are hiding from consumers.
Thanks for asking. Marketing technique shrinkflation is becoming more and more common in large retail stores, in particular down to the ongoing war in Ukraine.
It sees manufacturers quietly reducing the size of their products, but maintaining prices at the same level, shrinkflation is often the result of an increase in raw material prices and other production costs.
But is seen as a form of hidden inflation and has been heavily criticised in many places.
In the context of the current cost of living crisis it's definitely a sensitive subject.
According to Merriam Webster, the portmanteau term was coined by British economist Pippa Malmgren in a tweet back in 2015.
Many everyday products are affected and that may well include some that you've purchased without noticing the subtle change.
In June 2022, Business Insider compiled a list of 24 extreme shrinkflation examples from the US.
It included Walmart dropping its great value paper towels from 168 sheets per roll to 120, Doritos bags shrinking from 9 .75 ounces to 9 .25 ounces and Cadbury's changing the size and shape of its chocolate bars to contain 10 % less chocolate than before.
That sounds well dodgy.
Is shrinkflation illegal?
As long as the price and exact weight are labelled clearly, then it's ok from a legal point of view.
The technique lets companies stay competitive despite inflation and ensures the shelves in our local stores don't end up empty.
Not to mention we can still enjoy our favourite products at the same price, albeit we're getting less bang for our buck.
But many media outlets have reported on the phenomenon with negative connotations and customers tend to feel duped once they realise what has happened.
In 2017, independent journalist Andreas Whittem Smith called shrinkflation a fraud against consumers.
There can be a loss of trust and customers may look elsewhere, feeling let down by brands whose products they've been buying for some time.
As a consumer, how can I avoid falling victim to shrinkflation?
Well, it's hard to directly impact a brand's marketing strategies, although kicking up a fuss on social media may get you somewhere.
That's what happened when Toblerone widened the gap between the trademark triangle chunks in its chocolate bars in 2016.
People figured it out.
It led to negative publicity for the brand and they discontinued the new shape.
Nevertheless, when reverting back to the original bigger design, the price increased.
So you could say that it's just economics and inflation is an inescapable reality, whether it be in its regular form or of the hidden shrinkflation kind.
As shoppers we can at least pay attention to the products we buy on a regular basis, whether it be food, household essentials or hygiene products.
Shrinkflation is effective because consumers generally pay more attention to the price of what they're buying, rather than the specific quantity.
Visualising the packaging is useful, some people are able to spot when something has changed.
Indeed, manufacturers often take advantage of limited edition ranges and packaging redesigns to reduce the size of their products.
There you have it! Now you know what shrinkflation is.
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