In lieu of price hikes, companies now likely to try ‘shrinkflation’

It’s the inflation you’re not supposed to see.

From toilet paper to yogurt and coffee to corn chips, manufacturers are quietly shrinking package sizes without lowering prices. It’s dubbed“shrinkflation,” and it’s accelerating worldwide.

In the U.S., a small box of Kleenex now has 60 tissues; a few months ago, it had 65. Chobani Flips yogurts have shrunk from 5.3 ounces to 4.5 ounces. In the U.K., Nestle slimmed down its Nescafe Azera Americano coffee tins from 100 grams to 90 grams. In India, a bar of Vim dish soap has shrunk from 155 grams to 135 grams.

Shrinkflation isn’t new, experts say. But it proliferates in times of high inflation as companies grapple with rising costs for ingredients, packaging, labor and transportation. Global consumer price inflation was up an estimated 7% in May, a pace that will likely continue through September, according to S&P Global.

“It comes in waves. We happen to be in a tidal wave at the moment because of inflation,” said Edgar Dworsky, a consumer advocate and former assistant attorney general in Massachusetts who has documented shrinkflation on his Consumer World website for decades.

Dworsky said shrinkflation appeals to manufacturers because they know customers will notice price increases but won’t keep track of net weights or small details, like the number of sheets on a roll of toilet paper. Companies also can employ tricks to draw attention away from downsizing, such as marking smaller packages with bright new labels that draw shoppers’ eyes.