“Shrinkflation:” What is it and why is it becoming more common?

If your grocery bags feel lighter or your trips to the store are becoming more frequent, you’re not alone. Some companies are reducing the size or quantity of their products rather than raising prices, leaving consumers shortchanged. A new study by Lending Tree found that nearly 3 in 4 Americans have noticed that some of their go-to grocery items have gotten smaller- with the price staying the same or rising.

The phenomenon has been dubbed “Shrinkflation.”

A third of the 98 products LendingTree researchers analyzed have shrunk. Household paper products, such as toilet paper and paper towels saw the highest rate of change via fewer sheets per roll. 12 of 20 household products reduced their sheet count.

Seven of the 16 breakfast items analyzed have been downsized since 2019 or 2020.

71% of Americans report experiencing or noticing at least one incident of shrinkflation in the past year. 57% of Americans say they’ve experienced or noticed multiple incidents of shrinkflation in the past year. According to the study, the Baby Boomer generation is much more likely to report noticing multiple instances of shrinkflation in the past year than Gen Zers and millennials.

82% who’ve noticed shrinkflation say they feel deceived when they see incidents of it, and 66% say they’ve stopped buying products because of it. Gen Zers are most likely to say they stopped purchasing products because of shrinkflation.

Consumers don’t just look at prices, they prefer price bumps over shrinking products. 89% of Americans always or sometimes compare brands’ product sizes or quantities when shopping. Many Americans would prefer that companies raise prices rather than reduce sizes.

Economists say shrinkflation comes when companies need to increase profit margins or maintain them when input costs rise. But there doesn’t seem to be a definite cause across all products.

You can read a full breakdown of the study by clicking right here.