Budapest Post

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

0:00
0:00

'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?"

Newsletter

Related Articles

0:00
0:00
Close
Unelected PM of the UK holds an emergency meeting because a candidate got voted in… which he says is a threat to democracy…
Farmers break through police barriers in Brussels.
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Apple warns against drying iPhones with rice
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
German economy is in 'troubled waters' - ministry
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Russia is rebuilding capacity to destabilize European countries, new UK report warns
EU Commission wants anti-drone defenses at Brussels HQ
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
EU Investigates TikTok for Child Safety Concerns
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
EU and UK Announce Joint Effort on Migration
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
"Historic Step": Zelensky Signs Security Pact With Germany
"Historic Step": Zelensky Signs Security Pact With Germany
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Tucker Carlson grocery shopping in Russia. This is so interesting.
France and Germany Struggle to Align on European Defense Strategy
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Greece Legalizes Same-Sex Marriage and Adoption Rights
Russia "Very Close" To Creating Cancer Vaccines, Says Vladimir Putin
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Microsoft says it caught hackers from China, Russia and Iran using its AI tools
US Rejects Putin's Ceasefire Offer in Ukraine
The Dangers of Wildfire Smoke and Self-Protection Strategies
A Londoner has been arrested for expressing his Christian beliefs.
Chinese Women Favor AI Boyfriends Over Humans
Greece must address role in migrant vessel disaster that killed 600: Amnesty
Google pledges 25 million euros to boost AI skills in Europe
Hungarian President Katalin Novák Steps Down Amid Pardon Controversy
Activist crashes Hillary Clinton's speech, calls her a 'war criminal.'
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Trudeau reacts to Putin's mention of Canadian Parliament applauding a former Ukrainian Nazi in his interview with Tucker Carlson.
The Spanish police blocked the farmers protest. So the farmers went out and moved the police car out of the way.
Volodymyr Zelenskiy fires top Ukraine army commander
Tucker Carlson's interview with Vladimir Putin raises EU concerns
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
Russia's Economy Expands by 3.6% Due to Increased Military Spending
Ukraine MPs Vote To Permit Use Of Dead Soldiers' Sperm
German Princess Becomes First Aristocrat To Pose Naked On Playboy Cover
UK’s King Charles III diagnosed with cancer
EU's Ursula von der Leyen Confronts Farmer Protests Amid Land Policy Debates
Distinguishing Between Harmful AI Media and Positive AI-Generated Content: A Crucial Challenge for the EU
Tucker Carlson explains why he interviewed Putin
Dutch farmers are still protesting in the Netherlands against the government, following the World Economic Forum's call for 'owning nothing.'
Hungarian Prime Minister Viktor Orbán stands up for European farmers and says, 'Brussels is suffocating European farmers.
×