Shrinkflation: Business Tactics and Consumer Impact

Business Owners’ Reasoning and Plans

• More than 1 in 10 business owners (12%) have used shrinkflation as a strategy. Of those, more than one-third (36%) were not transparent with their customers about it.

• Business owners’ most common reasons for shrinkflation are to stay profitable (64%) and to offset rising production and supply chain costs (44%).

• 1 in 5 business owners who have not used shrinkflation say they will.

Impacted Products and Consumer Response

• More than 4 in 5 Americans have seen shrinkflation. Since 2020, 29% say they have seen it very often.

• The top categories in which consumers see shrinkflation are:

  • Snacks (80%)
  • Candy (55%)
  • Personal care products (46%)
  • Cleaning products (41%)

• More than 2 in 3 have switched companies or brands due to shrinkflation, while almost half (45%) have opted for generic alternatives.

Methodology

We surveyed 202 business owners and 800 consumers to gather their perspectives about product shrinkflation on March 7, 2024.

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Fair Use Statement

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