The Economics of Less: What Shrinkflation Reveals About Price, Perception, and Power
The Economics of Less: What Shrinkflation Reveals About Price, Perception, and Power The Silent Reduction A consumer reaches for their familiar carton of ice cream, the price exactly where they left it, yet something feels subtly wrong—the carton shape is slimmer, the quantity reduced. This common, seemingly minor disappointment, repeated across countless grocery aisles and product categories, is the frontline experience of a pervasive economic maneuver known as shrinkflation. This term describes the practice where manufacturers or retailers reduce the size or quantity of a product while keeping its price unchanged. The result is an effective increase in the per-unit price for consumers without an explicit price hike. This strategy is often employed as an indirect response to rising production costs, allowing firms to recover expenses without triggering the sharp consumer backlash that might result from overt price increases. ...