Imagine opening your favorite bag of chips and being greeted with a puff of air. There are chips for one tooth. But the price, of course, remains the same! Welcome to the world of shrinkflation, where packages become master illusionists: they look like before, but inside they hide a difficult “economic reality”. Let’s take a look at why instead of a full fridge after grocery shopping, you now feel like you’ve been shopping in the miniatures department, and how manufacturers are reducing our food portions without reducing our checks.
Illusions of shrinkflation
Shrinkflation is a clever technique when manufacturers reduce the volume, weight or quantity of a product in a package, leaving the price unchanged or reducing it to a small extent. The term comes from the English words shrink and inflation, and literally means “reduction due to inflation.”
This phenomenon became popular among manufacturers during periods of economic instability or rising costs of raw materials, when openly raising prices meant the risk of losing customers. By replacing the usual 200 grams with 180 or reducing the number of units in a pack, companies hope that consumers will not notice the change, especially if the appearance of the package remains the same. Let’s say, ordinary yogurt – from the outside, the packaging is the same as before, per liter of product. You put it in the basket and do not notice the insidiousness of the manufacturer. Only at home do you realize that the tetrapak is half empty and the yogurt is not enough for four meals, but for two. Especially such “optimizations” of the product annoy housewives who cook according to recipes, where they usually start from traditional volumes – from a liter of milk/kefir or from half a liter. You bring home a familiar package of milk, but there is no longer a liter, but only 850 ml of the product.
What are the manufacturers counting on?
On inattention. Shrinkflation is based on the assumption that the buyer rarely examines the fine print detailing the weight or quantity on the label. It works as a psychological trick when a person intuitively assesses the value of a product by its appearance or by familiar associations, without paying attention to hidden abbreviations. This allows manufacturers to hide the real impact of inflation by passing the cost on to the consumer in a less obvious way.
Shrinkflation is far from a unique phenomenon for Ukraine. In 2024, almost one in three products on the shelves of American supermarkets fell victim to this hidden trick. Paper products such as toilet paper and paper towels were particularly affected. Manufacturers reduced the number of sheets in a roll or reduced the size of the rolls themselves, but the prices remained unchanged.
However, one of the most vivid and at the same time the most absurd examples of shrinkflation happened in Russia at the end of 2018. Due to the shortage of chicken eggs, stores began to sell packages of eggs not by the usual 10, but by 9. At first glance, the change might seem insignificant, but the trick was that the price for the “new” dozen remained the same as for the old one . This approach caused a wave of surprise and outrage among customers, because the reduction in the amount of product in the package was so obvious that even those who normally do not pay attention to details noticed the difference.
Infographic: IA “FACT”
Hence, shrinkflation is a global practice that companies resort to in response to economic challenges. The only difference is how inventive or shameless manufacturers become, trying to “adapt” their products to new realities.
So, shrinkflation calls into question the principle of a single price, which is desirable for consumers to understand. According to the data World Economic Forum, their level of awareness of the realities of shrinking varies by region, with the highest rates recorded in the UK (82%), Canada (80%) and Australia (79%).
Packaging manipulation
Imagine another situation: you buy medicine at a pharmacy, the instructions clearly state that the minimum course of treatment is 7 days (one pill per day), but the package itself contains only 6 pills. This is not just an inconvenience – it is a manipulation that can be called “incomplete dosage packaging” or “deficient packaging”. A paradoxical situation arises, when for a full course of treatment you are forced to purchase another package, even if the medicine remains partially.
This approach allows manufacturers or pharmacies to manipulate the quantity of the product, forcing the consumer to spend more money on additional packages. It also creates a situation where the buyer may not realize that they are actually being offered a product that does not even cover the minimum requirements for treatment and end up spending more than expected.
This phenomenon is not isolated. Such practices involving incomplete dosing appear to be an attempt to circumvent legal requirements for drug packaging or simply a marketing ploy to increase sales. Therefore, it is important to carefully study the instructions and packaging before buying, in order to avoid unpleasant surprises and not to overpay for the same medicine.
How do regulators combat shrinkflation?
The fight against shrinkflation varies in different countries depending on the legislation and regulations. In the European Union, there is a law that obliges manufacturers to clearly indicate the weight or volume of products on the packaging. This allows consumers to compare products by quantity and price and better navigate shopping. This approach makes it possible to avoid packaging manipulation, because buyers can easily detect changes in the volume or weight of the product.
In the United States, the fight against shrinkflation has a different mechanism. The Federal Trade Commission (FTC) actively works to ensure fairness in the marketplace by imposing fines on companies that mislead consumers. If businesses reduce the amount of product in the package, but do not provide clear information about this, they can be held liable. This contributes to increasing transparency and protection of consumer rights.
In France, Carrefour supermarkets have implemented a new practice since 2023: they stick special stickers on products that have undergone shrinkflation. This allows buyers to immediately see which products have changed volume or quantity and prevents unfair practices on the part of manufacturers.
In Japan, there is a platform that conducts regular research, identifying brands that resort to shrinkflation. They publish reports that help consumers be more informed and protected from market manipulation. Resource started the average consumer, annoyed that his favorite cookie has become smaller in size.
As for Ukraine, currently there is no special legislation in the country that would directly regulate shrinkflation, and this phenomenon is considered completely legal. Manufacturers are only required to provide true information about the quantity and quality of the product on the label. At the same time, for in words People’s Deputy Dmytro Gurin, a draft law is already being prepared in Ukraine, which will oblige retail chains to indicate the price of the product per kilogram or liter, if the product is sold in a smaller package. This will allow consumers to better navigate the cost of the product and detect manipulations with the reduction of packages. This practice is used by almost all manufacturers, so it is necessary to make it unprofitable for them, noted people’s deputy He expressed hope that the draft law will be adopted in the spring, and will come into force already in the summer. According to him, there is currently no opposition to this initiative from the manufacturers. In addition, the implementation of such a law is part of Ukraine’s European obligations.
Manipulation of the increase in packaging
Our infographic shows two bars for each product. The first illustrates the phenomenon of shrinkflation, and the second – its opposite, absizing. Absizing is an increase in the amount of a product in a package, usually used to create a positive impression or drive sales. However, absizing is also a manipulative tactic. It is designed to give the consumer a sense of benefit and increase the value of the product in his eyes. This approach may also be due to the desire to save on the scale of production: larger volumes of goods allow to reduce the cost per unit of production, offering consumers an attractive volume at the same or slightly higher price.
In highly competitive segments such as snacks or beverages, absizing is often used to attract customers. For example, in the tea or coffee categories, larger packages may be positioned as an “economy” or “premium” offering, intended to create a sense of greater value through increased volume. Thus, although absizing appears to be beneficial to the buyer, its main purpose is to increase sales and create the illusion of added value.
Instead, the share of upsizing in the given data is much lower than shrinkflation. This means that manufacturers have reduced package sizes more often than increased them due to economic pressures (increasing costs of raw materials, production, etc.). Upsizing was only observed in a few categories (such as paper products), but remained the exception rather than the rule.
