1. Shrinkflation, subtle packaging size reductions with a simultaneous price increase, is a phenomenon within retailing, used by both suppliers and retailers. Large-scale studies show that shrinkflation is relatively uncommon, does not occur in all categories and is not used repeatedly in categories that are affected. Brands that use shrinkflation typically gain sales.
   
   
2. Many consumers feel that companies are using shrinkflation to trick them. Interestingly, large groups of consumers automatically expect shrinkflation when they learn about package size reductions even when new prices are not communicated. This may lead to mistrust between consumers and companies when reasons for the change are not revealed. 
                  
3. Companies often motivate shrinkflation by cost increases and market changes. Shrinkflation is complex, and actors have different information and emotions about it. Two recommendations to deal with shrinkflation are to (1) communicate about packaging changes with transparency, and (2) educate consumers to use volume prices (per liter/kilograms) and rely less on unit prices.

2025-03-19