Your hands are not getting bigger, it's just that the items you're grabbing off the shelves at the grocery store are getting smaller. And they aren't just magically doing it by themselves the way your jeans do after an incorrect temperature wash. They are being shrunk purposely by your favourite big brands. You're unwittingly or sometimes frustratedly wittingly paying the same price for less and it's called shrinkflation. With factors like fluctuating commodity prices, transportation costs, and other economic influences like WAR!!! (sorry I just had an outburst), brands are finding "creative" ways to slow cook us like frogs...I mean maintain profitability without causing a noticeable dent in consumers' wallets.
So what is Shrinkflation?
Shrinkflation is a term used to describe the subtle reduction in the size or quantity of a product while maintaining its original price. Essentially, it's a way for companies to offset rising production costs without overtly increasing the sticker price. CEOs of these major brands argue that their profits are decreasing but when looking at the numbers, these profits have actually fluctuated over the last few years and vary by give or take 5% every year. Which means that on average, a brand like Kelloggs is still earning a profit every year of 4.6 Billion. So if products on shelves remain the same size (with no shrinkflation applied) and big brands keep their pricing the same, then their losses won't be sending them to bed without dinner. They're still very much having a big fat steak and dessert.
Origins of Shrinkflation:
Shrinkflation is not new. It's an economic manoeuvre that allows businesses to cope with inflation, changing commodity prices, or other cost pressures without alarming consumers with a noticeable price hike. And this is not a Kellogg specific issue. I just chose Kelloggs because I have enjoyed a bowl in Africa, Asia, Australasia and North America. I have dealt with this brand on different continents. Lucky them. I also eat pizza, pringles and use toilet paper and I would hate especially the latter to shrink any further.
Let's look at how Big Brands Practice Shrinkflation:
1. Reducing Package Sizes: Brands may shrink the physical dimensions of their packaging, making it less noticeable to consumers. Trickery that would even have Penn & Teller hoodwinked.
2. Adjusting Product Weight or Quantity: Another common method is tweaking the weight or quantity of the product itself. This subtle reduction often goes unnoticed by consumers. (Obviously I find this kinda impressive since I've been trying to shrink my waistline for a while now). You'll notice new sizes being introduced like Minis and Megas, varying in new quantities so we get lost in the sauce and can't compare the new apples with the old ones.
As consumers become more conscious that taking two mouthfuls of their favourite breakfast cereal now means the entire box is empty, there has been an increase in demand for brands to show more transparency. Consumers are also asking that consumer watchdogs and government get involved in setting limits. It's important to stay aware of these subtle changes and feel empowered to report these when you notice them. You have more power than you think. That power becomes exponential when you inform others and as a collective you make alternate purchasing decisions or no purchase at all.
(Image used from Tiny Frock Shop)