What is Shrinkflation?

Inception Point AI

Shrinkflation refers to the practice of companies subtly reducing the size or quantity of a product while still charging the same price. This allows companies to avoid significantly raising prices, which could shock or alert consumers, while still increasing profit margins. The Origin of Shrinkflation The term "shrinkflation" is a portmanteau of the words "shrinking" and "inflation." It was first used in 2009 when the global financial crisis and rising production costs led companies to shrink package sizes without lowering prices accordingly. This allowed companies to offset rising input prices without consumers realizing they were getting less for their money. However...

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