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What is Shrinkflation?
Let’s break down the word “shrinkflation.”
Shrink is a verb meaning to become or make smaller in size or amount.
Is it an inflation or deflation?
It is a blend of the words shrink and inflation.
Instead of raising the prices of items directly, like we see with gas prices soaring and Dollar Tree stores no longer selling items for $1, some companies are shrinking the amount product in the same package.
This product downsizing while keeping the price about the same is known as “shrinkflation.”
Over 10 years ago I remember walking down the frozen section aisle and noticing Breyers downsized their ice cream carton.
Then, I noticed the Gatorade bottles look slimmer. Gatorade downsized from 32 oz to 28 oz bottles. 4 oz less is a half cup less.
More recently, the 18-count Charmin Mega Rolls dropped from 264 sheets to 244 sheets. 20 sheets does not seem a lot, but 20 sheets equate to approximately a roll and a half.
Shrinkflation helps companies reduce cost and thereby increase their operating margin and profitability.
