Shrinkflation, the Grocery Shrink Ray

illustration by Andy McNally

In economics, shrinkflation, also known as the grocery shrink ray, is the process of items shrinking in size or quantity, or even sometimes reformulating or reducing quality, while their prices remain the same. Shrinkflation can affect various products like cereal, toilet paper, and snacks, where sizes are subtly reduced while prices remain constant, leading to decreased value for consumers.

sketchnote by Andy McNally

Increase Profits

Shrinkflation allows companies to increase their operating margin and profitability by reducing costs while maintaining sales volume. It is often used as an alternative to raising prices. Consumer protection groups are critical of the practice.

illustration by Andy McNally

Environmental Impact

One thing that is often overlooked or neglected about the practice of shrinkflation is the impact that it can have on the environment. Shrinkflation can contribute to increased waste as consumers may need to buy more items to meet their needs due to reduced product sizes, leading…