Grocery 'shrinkflation' is worse now 'than in any other period in memory,' says expert—3 ways to avoid it (2024)

If you keep tabs on grocery prices, you probably aren't surprised to hear they've risen 20% in the last two years.

But there's another type of inflation you might have not noticed in the grocery store aisles during that time: shrinkflation.

Otherwise known as downsizing, "shrinkflation" describes how companies subtly decrease the size of a product without reducing the price. The packaging often remains the same, except for hard-to-notice changes in the product's labeling.

"Shrinkflation comes in waves," says Edgar Dworsky, founder of Mouse Print, a website that tracks instances of shrinkflation in groceries. "And it tends to be worse in times of inflation, as we have now."

How shrinkflation is costing you

Cases of shrinkflation are on the rise, according to Dworsky, a former television consumer reporterwho says he's been trackingdownsized products for decades.

"In 2022 and into 2023, I'm seeing more examples of products being downsized than in any other period in memory," he says.

These changes aren't announced by manufacturers, however, making it "impossible" to say exactly how many products are affected by shrinkflation, says Dworsky.

Instead, he relies on reader submissions as well as his own research in the shopping aisles. Recent instances of shrinkflation listed on Mouse Print include:

  • A carton of Pepperidge Farm Milano cookies that's decreased from 6.25 ounces to 6 ounces
  • Colgate Total Deep Clean toothpaste that's downsized from 5.1 ounces to 4.8 ounces
  • Various varieties of Green Giant frozen vegetables have downsized from 10 ounces to 8 ounces
  • The volume of Unilever's Dove body wash has been reduced from 24 ounces to 22 ounces to now 20 ounces

Shrinkflation is most common with paper products, candy, orange juice, cookies, breakfast cereal and snack foods like potato chips, says Dworsky.

A variant of shrinkflation is "skimpflation," which is a reduction in the quality of the product, usually through using cheaper or fewer ingredients than before.

A recent example of is the dilution of active ingredients in store brand cough syrups, so that you have to consume twice as much to get the same dosage as before.

Unfortunately, skimpflation is perhaps the most difficult form of price inflation to track since the exact quantity of ingredients often isn't listed on the package.

"Two scoops of raisins in Raisin Bran — well, how big is the d--- scoop?" says Dworsky, pointing out the difficulty in knowing whether there's fewer raisins in the cereal compared with previous versions of the product.

How to avoid shrinkflation

Unfortunately, it's not easy to spot shrinkflation unless you have an older version of the product on the same shelf as the new one, says Dworsky.

"Do we really have the spatial memory to recognize that a particular product has a narrower bottle or narrower box? I don't think so," he says. "And most consumers don't pay attention to the fine print. That's why downsizing really works."

Here are three tips from Dworsky for avoiding shrinkflation.

1. Look for the product's net weight

When comparing similar products, look for the net weight measurement listed on the package, which refers to the weight of the product minus all the packaging.

Since the net weight of a product can vary between similarly sized packages, this information will tell you exactly how much you're paying for.Often, the "cheaper" product will have less net weight, which means you get less bang for your buck.

You'll also want to track the net weight of products you regularly buy, as shrinkflation can make them less of a bargain over time.

Ignore labels like "family size," "mega size" or "fun size," since they have no standard meaning, says Dworsky.

2. Use the unit pricing listed on store shelves

Grocery stores usually have unit pricing for most products listed on the shelves, which lists the price based on the weight of a given product, typically expressed as price per pound or price per ounce. A 30-ounce jar of mayo that costs $8 would have a unit price of $0.27 per ounce.

Unit pricing can be helpful when similar products have all sorts of different weights and prices.

The downside is grocery stores can be inconsistent with how they display unit pricing, even within the same product category.

"Look at shampoos, for example," says Dworsky. "Some brands might have a unit price in terms of gallons. And some might be in terms of price per ounce."

This makes it harder to do a quick apples-to-apples comparison between two similar products. In that case, you might need to use the calculator on your phone to figure out which one is cheaper.

3. Stick with store brands

Store brands, or private label brands, like the ones offered by CVS or Kroger, typically have cheaper products than the other major brands you find on store shelves.

Store brands also tend to lag major brands in downsizing their products, which means you're more likely to avoid shrinkflation in the long run, says Dworsky.

DON'T MISS: Want to be smarter and more successful with your money, work & life?Sign up for our new newsletter!

Join CNBC's Small Business Playbook virtually on May 4th, where entrepreneurs will share advice and tips on how to handle economic uncertainty, inflation and more so your business can succeed for the short-term and the long-term. Register for free today.

Grocery 'shrinkflation' is worse now 'than in any other period in memory,' says expert—3 ways to avoid it (1)

VIDEO10:4610:46

How a couple making $123,000 in North Bergen, NJ spends their money

Millennial Money

Grocery 'shrinkflation' is worse now 'than in any other period in memory,' says expert—3 ways to avoid it (2024)

FAQs

Grocery 'shrinkflation' is worse now 'than in any other period in memory,' says expert—3 ways to avoid it? ›

As previously mentioned, shrinkflation is caused by companies choosing to reduce the package size of a product while maintaining the current price. It tends to occur during periods of inflation as companies are challenged to maintain operating margins despite rising costs.

What is causing shrinkflation? ›

As previously mentioned, shrinkflation is caused by companies choosing to reduce the package size of a product while maintaining the current price. It tends to occur during periods of inflation as companies are challenged to maintain operating margins despite rising costs.

Why is everything smaller at the grocery store? ›

Shrinkflation is the practice by companies of reducing the size or quantity of a product while keeping the same price. It can mean fewer chips in the bag, or fewer scoops of ice cream in the container. Basically, the purchase price remains the same but the cost per unit rises.

How to solve shrinkflation? ›

Here are 4 ways to minimize the impact of shrinkflation and get the best bang for your buck at the grocery store:
  1. Check alternatives to your favorite brand. ...
  2. Buy store brands. ...
  3. Notice the packaging. ...
  4. Keep track of unit pricing.
Mar 12, 2024

Why is shrinkflation unethical? ›

In one sense, shrinkflation can be seen as a somewhat deceptive tactic used by companies to conceal raising prices by reducing the amount of consumable product in each item sold rather than raising the item's price.

Why has food gotten smaller? ›

Sellers have been quietly shrinking products to avoid raising prices for centuries, and experts think it has been an obvious corporate strategy since at least 1988, when Chock Full o'Nuts cut its one-pound coffee canister to 13 ounces and its competitors followed suit.

What is the shrinkflation Act of 2024? ›

Introduced in Senate (02/28/2024) To direct the Federal Trade Commission to issue regulations to establish shrinkflation as an unfair or deceptive act or practice, and for other purposes.

Why is food at the grocery store so expensive now? ›

Food prices have always been volatile — especially so during the pandemic. Thanks to a combination of overall inflation, supply-chain disruptions and tariffs on certain foreign imports, food prices have risen 26% since the start of 2020.

Should shrinkflation be illegal? ›

CHARLOTTE, N.C. — The federal government is pushing to make "shrinkflation" illegal in the U.S. as American consumers deal with the ongoing impacts of inflation on the economy. Shrinkflation is the covert way companies raise prices by slightly reducing the size of their products.

Why is everything getting smaller and more expensive? ›

Firms selling a branded product will make deliberate efforts to continue selling at the same price thereby retaining loyal customers. Hence, to cope with inflation, fast moving consumer goods firms would often resort to shrinking the product size to avoid raising prices.

Who benefits from shrinkflation? ›

Shrinkflation is the practice of reducing the quantity or size of consumer goods while maintaining sticker prices. Companies may employ it when faced with rising input costs, as it can help maintain profit margins without alienating consumers, who may be more sensitive to price changes than packaging alterations.

What is the strategy of shrinkflation? ›

Shrinkflation is the practice of reducing the size of a product while keeping its sticker price. Raising the price per given amount is a strategy employed by companies, in the food and beverage industries, to stealthily boost profit margins or keep them in the face of rising input costs.

How to protest shrinkflation? ›

Here are five strategies savvy shoppers can use to shrink the effect shrinkflation has on their wallets.
  1. Pick Your Prices Like Peter Piper. Remember the nursery rhyme about Peter Piper picking a peck of pickled peppers? ...
  2. Go Big Before You Go Home. ...
  3. Dial in on Deals. ...
  4. Rethink Your Retail Relationships. ...
  5. Shrinkflation Support.

What are the cons of shrinkflation? ›

This mismatch leads to an increase in packaging material per unit of product, contributing to more packaging waste. Additionally, when faced with smaller product sizes, consumers may either consciously or unconsciously adjust their purchasing habits.

Can you sue a company for shrinkflation? ›

Under the bill, the Federal Trade Commission would be empowered to enact regulations establishing shrinkflation as a deceptive practice. It would also allow the FTC and state attorneys general to pursue civil actions against companies accused of shrinkflation.

How does shrinkflation affect us? ›

Shrinkflation raises consumer costs by reducing the quantity of a product for the same price. Steady inflation can be part of a growing economy, but shrinkflation can create packaging waste, and it can wreak havoc on old recipes.

Why is packaging getting smaller? ›

Shrinkflation is the practice of reducing the quantity or size of consumer goods while maintaining sticker prices. Companies may employ it when faced with rising input costs, as it can help maintain profit margins without alienating consumers, who may be more sensitive to price changes than packaging alterations.

Is shrinkflation worse than inflation? ›

Key Points. Shrinkflation raises consumer costs by reducing the quantity of a product for the same price. Steady inflation can be part of a growing economy, but shrinkflation can create packaging waste, and it can wreak havoc on old recipes.

Does the CPI take into account shrinkflation? ›

As part of the process of collecting accurate data needed to estimate the Consumer Price Index, BLS economists not only monitor product prices, but they monitor product sizes. This allows BLS to ensure that product size changes associated with shrinkflation are accurately reflected in the CPI.

Top Articles
Latest Posts
Article information

Author: Trent Wehner

Last Updated:

Views: 6386

Rating: 4.6 / 5 (56 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Trent Wehner

Birthday: 1993-03-14

Address: 872 Kevin Squares, New Codyville, AK 01785-0416

Phone: +18698800304764

Job: Senior Farming Developer

Hobby: Paintball, Calligraphy, Hunting, Flying disc, Lapidary, Rafting, Inline skating

Introduction: My name is Trent Wehner, I am a talented, brainy, zealous, light, funny, gleaming, attractive person who loves writing and wants to share my knowledge and understanding with you.