Shrinkflation is a pricing tactic where manufacturers covertly reduce the size or quantity of familiar products while keeping the package price the same, or even slyly increasing it. Shrinkflation is a subtle means for consumer goods producers to conceal a rise in unit prices by giving customers less product at the same cost. This strategy is frequently deployed during periods of inflation and impending economic downturns.
But why not simply raise the prices outright? Consumers are generally understanding of price hikes if they perceive them as reasonable. However, when it comes to products like food and shampoo, they might not fully comprehend the reasons behind these pricing adjustments. As they feel the economic pressure mounting, consumers tend to find shrinkflation and the preservation of familiar package prices more palatable than a direct price increase.