Shrinkflation

Companies are resorting to the strategy of Shrinkflation to reduce the impact of rising input costs.

About Shrinkflation

• Shrinkflation is when a product downsizes its quantity while keeping the price the same.
• In other words, shrinkflation occurs when goods shrink in size but consumers pay the same price.
• It occurs when manufacturers downsize products to offset higher production costs but keep retail prices same.
• British economist Pippa Malmgren is generally credited for inventing the term in 2009.
• The phenomenon has become quite common in the food and beverage industry.

Causes of Shrinkflation

Higher Production Costs

• Rising production costs are generally the primary ....