Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

'Shrinkflation' accelerates globally as manufacturers quietly shrink package sizes

'Shrinkflation' accelerates globally as manufacturers quietly shrink package sizes

Shrinkflation isn't new, experts say. But it proliferates in times of high inflation as companies grapple with rising costs for ingredients, packaging, labor and transportation.

It's the inflation you're not supposed to see.

From toilet paper to yogurt and coffee to corn chips, manufacturers are quietly shrinking package sizes without lowering prices. It's dubbed "shrinkflation," and it's accelerating worldwide.

In the U.S., a small box of Kleenex now has 60 tissues; a few months ago, it had 65. Chobani Flips yogurts have shrunk from 5.3 ounces to 4.5 ounces. In the U.K., Nestle slimmed down its Nescafe Azera Americano coffee tins from 100 grams to 90 grams. In India, a bar of Vim dish soap has shrunk from 155 grams to 135 grams.

Shrinkflation isn't new, experts say. But it proliferates in times of high inflation as companies grapple with rising costs for ingredients, packaging, labor and transportation. Global consumer price inflation was up an estimated 7% in May, a pace that will likely continue through September, according to S&P Global.

"It comes in waves. We happen to be in a tidal wave at the moment because of inflation," said Edgar Dworsky, a consumer advocate and former assistant attorney general in Massachusetts who has documented shrinkflation on his Consumer World website for decades.

Dworsky began noticing smaller boxes in the cereal aisle last fall, and shrinkflation has ballooned from there. He can cite dozens of examples, from Cottonelle Ultra Clean Care toilet paper, which has shrunk from 340 sheets per roll to 312, to Folgers coffee, which downsized its 51-ounce container to 43.5 ounces but still says it will make up to 400 cups. (Folgers says it's using a new technology that results in lighter-weight beans.)

Dworsky said shrinkflation appeals to manufacturers because they know customers will notice price increases but won't keep track of net weights or small details, like the number of sheets on a roll of toilet paper. Companies can also employ tricks to draw attention away from downsizing, like marking smaller packages with bright new labels that draw shoppers' eyes.

Two boxes of Kleenex tissues are displayed in Ann Arbor, Mich., on May 25. In the U.S., a small box of Kleenex now has 60 tissues; a few months ago, it had 65.


That's what Fritos did. Bags of Fritos Scoops marked "Party Size" used to be 18 ounces; some are still on sale at a grocery chain in Texas. But almost every other big chain is now advertising "Party Size" Fritos Scoops that are 15.5 ounces — and more expensive.

PepsiCo didn't respond when asked about Fritos. But it did acknowledge the shrinking of Gatorade bottles. The company recently began phasing out 32-ounce bottles in favor of 28-ounce ones, which are tapered in the middle to make it easier to hold them. The changeover has been in the works for years and isn't related to the current economic climate, PepsiCo said. But it didn't respond when asked why the 28-ounce version is more expensive.

Likewise, Kimberly-Clark — which makes both Cottonelle and Kleenex — didn't respond to requests for comment on the reduced package sizes. Procter & Gamble Co. didn't respond when asked about Pantene Pro-V Curl Perfection conditioner, which downsized from 12 fluid ounces to 10.4 fluid ounces but still costs $3.99.

Earth's Best Organic Sunny Day Snack Bars went from eight bars per box to seven, but the price listed at multiple stores remains $3.69. Hain Celestial Group, the brand's owner, didn't respond to an email seeking comment.

Some companies are straightforward about the changes. In Japan, snack maker Calbee Inc. announced 10% weight reductions — and 10% price increases — for many of its products in May, including veggie chips and crispy edamame. The company blamed a sharp rise in the cost of raw materials.

Domino's Pizza announced in January it was shrinking the size of its 10-piece chicken wings to eight pieces for the same $7.99 carryout price. Domino's cited the rising cost of chicken.

In India, "down-switching" — another term for shrinkflation — is mostly done in rural areas, where people are poorer and more price sensitive, said Byas Anand, head of corporate communications for Dabur India, a consumer care and food business. In cities, companies simply jack up prices.

"My company has been doing it openly for ages," Anand said.

Some customers who have noticed the downsizing are sharing examples on social media. Others say shrinkflation is causing them to change their shopping habits.

Alex Aspacher does a lot of the grocery shopping and meal planning for his family of four in Haskins, Ohio. He noticed when the one-pound package of sliced Swiss cheese he used to buy shrank to 12 ounces but kept its $9.99 price tag. Now, he hunts for deals or buys a block of cheese and slices it himself.

Aspacher said he knew prices would rise when he started reading about higher wages for grocery workers. But the speed of the change — and the shrinking packages — have surprised him.

"I was prepared for it to a degree, but there hasn't been a limit to it so far," Aspacher said. "I hope we find that ceiling pretty soon."

Sometimes the trend can reverse. As inflation eases, competition might force manufacturers to lower their prices or reintroduce larger packages. But Dworsky says once a product has gotten smaller, it often stays that way.

"Upsizing is kind of rare," he said.

Hitendra Chaturvedi, a professor of supply chain management at Arizona State University's W.P. Carey School of Business, said he has no doubt many companies are struggling with labor shortages and higher raw material costs.

But in some cases, companies' profits — or sales minus the cost of doing business — are also increasing exponentially, and Chaturvedi finds that troubling.

He points to Mondelez International, which took some heat this spring for shrinking the size of its Cadbury Dairy Milk bar in the U.K. without lowering the price. The company's operating income climbed 21% in 2021, but fell 15% in the first quarter as cost pressures grew. By comparison, PepsiCo's operating profit climbed 11% in 2021 and 128% in the first quarter.

"I'm not saying they're profiteering, but it smells like it," Chaturvedi said. "Are we using supply constraints as a weapon to make more money?"

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Ukraine's Ousted Defence Minister Calls for Wartime Presidential Election
Thieves Steal Antonello da Messina Renaissance Masterpieces From Sicilian Museum
Google Launches Pixel 11 With Gemini AI at the Center of Its Hardware Strategy
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
UK Drought Cuts Harvests and Raises Food-Security Fears
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
×