It91Ƶs the inflation you91Ƶre not supposed to see.
From toilet paper to yogurt and coffee to corn chips, manufacturers are quietly shrinking package sizes without lowering prices. It91Ƶs dubbed 91Ƶshrinkflation,91Ƶ and it91Ƶs 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 isn91Ƶt 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.
91ƵIt comes in waves. We happen to be in a tidal wave at the moment because of inflation,91Ƶ 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 began noticing smaller boxes in the cereal aisle last fall, and shrinkflation has ballooned from there. He can cite dozens of examples, from Cottonelle Ultra Clean Care toilet paper, which has shrunk from 340 sheets per roll to 312, to Folgers coffee, which downsized its 51-ounce container to 43.5 ounces but still says it will make up to 400 cups. (Folgers says it91Ƶs using a new technology that results in lighter-weight beans.)
Dworsky said shrinkflation appeals to manufacturers because they know customers will notice price increases but won91Ƶt keep track of net weights or small details, like the number of sheets on a roll of toilet paper. Companies can also employ tricks to draw attention away from downsizing, like marking smaller packages with bright new labels that draw shoppers91Ƶ eyes.
That91Ƶs what Fritos did. Bags of Fritos Scoops marked 91ƵParty Size91Ƶ used to be 18 ounces; some are still on sale at a grocery chain in Texas. But almost every other big chain is now advertising 91ƵParty Size91Ƶ Fritos Scoops that are 15.5 ounces 91Ƶ and more expensive.
PepsiCo didn91Ƶt respond when asked about Fritos. But it did acknowledge the shrinking of Gatorade bottles. The company recently began phasing out 32-ounce bottles in favor of 28-ounce ones, which are tapered in the middle to make it easier to hold them. The changeover has been in the works for years and isn91Ƶt related to the current economic climate, PepsiCo said. But it didn91Ƶt respond when asked why the 28-ounce version is more expensive.
Likewise, Kimberly-Clark 91Ƶ which makes both Cottonelle and Kleenex 91Ƶ didn91Ƶt respond to requests for comment on the reduced package sizes. Proctor & Gamble Co. didn91Ƶt respond when asked about Pantene Pro-V Curl Perfection conditioner, which downsized from 12 fluid ounces to 10.4 fluid ounces but still costs $3.99.
Earth91Ƶs Best Organic Sunny Day Snack Bars went from eight bars per box to seven, but the price listed at multiple stores remains $3.69. Hain Celestial Group, the brand91Ƶs owner, didn91Ƶt respond to an email seeking comment.
Some companies are straightforward about the changes. In Japan, snack maker Calbee Inc. announced 10% weight reductions 91Ƶ and 10% price increases 91Ƶ for many of its products in May, including veggie chips and crispy edamame. The company blamed a sharp rise in the cost of raw materials.
Domino91Ƶs Pizza announced in January it was shrinking the size of its 10-piece chicken wings to eight pieces for the same $7.99 carryout price. Domino91Ƶs cited the rising cost of chicken.
In India, 91Ƶdown-switching91Ƶ 91Ƶ another term for shrinkflation 91Ƶ is mostly done in rural areas, where people are poorer and more price sensitive, said Byas Anand, head of corporate communications for Dabur India, a consumer care and food business. In cities, companies simply jack up prices.
91ƵMy company has been doing it openly for ages,91Ƶ Anand said.
Some customers who have noticed the downsizing are sharing examples on social media. Others say shrinkflation is causing them to change their shopping habits.
Alex Aspacher does a lot of the grocery shopping and meal planning for his family of four in Haskins, Ohio. He noticed when the one-pound package of sliced Swiss cheese he used to buy shrank to 12 ounces but kept its $9.99 price tag. Now, he hunts for deals or buys a block of cheese and slices it himself.
Aspacher said he knew prices would rise when he started reading about higher wages for grocery workers. But the speed of the change 91Ƶ and the shrinking packages 91Ƶ have surprised him.
91ƵI was prepared for it to a degree, but there hasn91Ƶt been a limit to it so far,91Ƶ Aspacher said. 91ƵI hope we find that ceiling pretty soon.91Ƶ
Sometimes the trend can reverse. As inflation eases, competition might force manufacturers to lower their prices or reintroduce larger packages. But Dworsky says once a product has gotten smaller, it often stays that way.
91ƵUpsizing is kind of rare,91Ƶ he said.
Hitendra Chaturvedi, a professor of supply chain management at Arizona State University91Ƶs W.P. Carey School of Business, said he has no doubt many companies are struggling with labor shortages and higher raw material costs.
But in some cases, companies91Ƶ profits 91Ƶ or sales minus the cost of doing business 91Ƶ are also increasing exponentially, and Chaturvedi finds that troubling.
He points to Mondelez International, which took some heat this spring for shrinking the size of its Cadbury Dairy Milk bar in the U.K. without lowering the price. The company91Ƶs operating income climbed 21% in 2021, but fell 15% in the first quarter as cost pressures grew. By comparison, PepsiCo91Ƶs operating profit climbed 11% in 2021 and 128% in the first quarter.
91ƵI91Ƶm not saying they91Ƶre profiteering, but it smells like it,91Ƶ Chaturvedi said. 91ƵAre we using supply constraints as a weapon to make more money?91Ƶ
91ƵDee-ann Durbin, The Associated Press