- Prices of consumer goods are increasing, from food to household necessities.
- The term shrinkflation describes brands selling smaller amounts of product for the same price as before.
- It’s a sneaky way for brands to hide growing prices.
- See more stories on Insider’s business page.
It’s not just you – some grocery products are getting smaller.
Ingredients and manufacturing are getting more expensive thanks to inflation, and if they can’t cut costs, companies have two main choices – hiking up prices or making their products smaller.
Many of these size changes are subtle, like making candy bars sold in multipacks smaller than ones being sold individually, or changing the shape of their products so you can barely notice the difference in weight.
“Do we raise the price knowing consumers will see it and grumble about it? Or do we give them a little bit less and accomplish the same thing? Often it’s easier to do the latter,” consumer advocate Edgar Dworsky told The Washington Post.
This phenomenon, known as shrinkflation, was already happening before the coronavirus pandemic, but is set to get worse because of rising labor costs and ingredient prices combined with soaring demand and a shipping crisis.