Understanding Shrinkflation

Shrinkflation is a practice where companies reduce the size or quantity of a product while maintaining the same price or even increasing it, effectively leading consumers to spend more for less. This approach has become increasingly common in various industries, with well-known examples including Listerine mouthwash, which shrank from 600ml to 500ml while also raising its price, resulting in a significant increase in cost per unit. Consumer expert Grace Farrell highlights that shrinkflation affects a wide array of products, including popular items like tea bags and laundry detergent, causing shoppers to unknowingly pay more while receiving less. This trend raises concerns about consumer awareness and transparency, as many people may not realize they are being affected by subtle price hikes that come disguised as size reductions.