Shrinkflation

Shrinkflation is a term used to describe the practice of reducing the size or quantity of a product while keeping its price the same. This means that consumers end up getting less of the product for the same amount of money they used to pay. Instead of explicitly raising the price, manufacturers decrease the size or quantity of the product. Consumers may not immediately notice the change as the packaging often appears identical, and the focus is on the overall price rather than the product’s quantity or size. Shrinkflation is used by companies to maintain their profit margins in the face of rising costs.

Supermarkets and grocery stores are legally obligated to display unit pricing both in-store and online, as well as in any advertising. A unit price is the cost of a product for a standard unit of measurement, such as weight, volume, or number. By comparing unit prices, consumers can make informed purchasing decisions and find the best value for their money. Ultimately, it is up to the consumer to read the labels and choose the product that provides the most value. If enough consumers do this, manufacturers may take notice and adjust their prices accordingly.