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 ....
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