Have you noticed your favorite box of cereal feels a little lighter lately, or that bag of chips seems suspiciously airier? You’re not alone. A sneaky tactic known as “shrinkflation” is quietly eroding consumers’ purchasing power at grocery stores across the country. While inflation has dominated headlines for the past few years, shrinkflation operates under the radar, reducing the size or quantity of a product while keeping the price the same (or even raising it!).
This seemingly minor change can have a significant impact on wallets. “Just bought my usual cereal,” one user said on Facebook. “Box feels lighter, checked the label – sure enough, less cereal for the same price! Frustrating!”
Manufacturers facing rising production costs often resort to shrinkflation as a way to maintain profit margins without resorting to outright price hikes. The hope is that consumers won’t notice or simply accept the “new normal.” However, with inflation already putting a strain on household budgets, shrinkflation adds another layer of financial burden.
The numbers behind the shrink
A recent report by the Bureau of Labor Statistics paints a concerning picture. Household paper products have seen a staggering 10.3% price increase due to shrinkflation between January 2019 and October 2023. That’s right – you’re paying more for less toilet paper, paper towels, and napkins. But household essentials aren’t the only victims. Snacks, cleaning products, coffee, and even everyone’s favorite summertime treat – ice cream – have all fallen prey to shrinkflation, with price increases ranging from 7.2% to 9.8%.
The fight against shrinkflation isn’t just about individual consumers. President Joe Biden, in his 2024 State of the Union address, took aim at “corporations that engage in deceptive pricing,” specifically calling out shrinkflation. He has proposed legislation that would give the Federal Trade Commission the authority to regulate shrinkflation and take action against companies that engage in the practice.
Hallease, a Texan filmmaker shared her thoughts on Instagram about the issue.
“When you start to think about those of us who are actually really struggling to put food on the table and feed families this becomes kind of serious kind of fast,” she said. “How do we look out for each other during this time of shrinkflation and greedflation?”
She mentioned some key tips to consider for the next time you shop at the grocery store.
Check the Unit Price Shelf Tags : Many stores are starting to display unit prices alongside the regular price tag. Use this tool to compare brands and sizes efficiently.
Embrace Generic Products : Store brand alternatives often offer the same quality as name brands at a fraction of the cost. Give them a try – you might be surprised!
Buy whole foods : How closely does the food resemble its original form. For example, a sack of potatoes can be prepared in multiple different ways, so you can have servings for days.
Other ideas include:
Become a Label Detective : Don’t be fooled by flashy packaging! Check the product size and unit price (usually listed as “price per ounce” or “price per gram”). This allows for informed comparisons and helps identify the best value for your money.
Use Coupons : Don’t underestimate the power of coupons! Combine them with store loyalty programs and digital promotions to maximize your savings.
Bulk Up Your Savings : Consider buying certain staples like rice, beans, or pasta in bulk from warehouse stores if you have the storage space. Just be sure you’ll use everything before it expires.
What’s the government going to do?
During President Joe Biden’s State of the Union speech in March, he took on “corporations that engage in price gouging or deceptive pricing from food to health care to housing.” Biden went on to specifically call out shrinkflation, remarking that “snack companies think you won’t notice when they charge you just as much for the same size bag but with fewer chips in it.”
He called for a bill to be passed that would give the Federal Trade Commission the authority to implement regulations to curb shrinkflation. The proposal would also allow the FTC and state attorneys general to bring civil actions against companies that engage in the practice.
Food inflation is still a major drag on voter approval of the Biden economy ahead of November. The Biden administration launched a joint task force of the U.S Department of Justice and Federal Trade Commission to examine corporate pricing.
