Smaller boxes in the cereal aisle? Say hello to shrinkflation.

It’s inflation you shouldn’t see. From toilet paper to yogurt and coffee to corn chips, manufacturers are quietly reducing package sizes without lowering prices. It’s called “inflation contraction” and is accelerating around the world.

In the United States, a small box of Kleenex now has 60 handkerchiefs; a few months ago, I had 65. Chobani Flips yogurts have dropped from 5.3 ounces to 4.5 ounces. In the UK, Nestlé reduced its Nescafe Azera Americano coffee cans from 100 grams to 90 grams. In India, a tablet of Vim dish soap has been reduced from 155 grams to 135 grams.

The reduction is not new, experts say. But it is proliferating in times of high inflation as companies face rising costs of ingredients, packaging, labor and transportation. Global consumer price inflation is expected to rise by 7% in May, a pace that is likely to continue through September, according to S&P Global.

Product reduction reports sizes have resurfaced over and over again since the beginning of the pandemic as a result of supply chain disruptions and global economic struggles.

“It’s coming in waves. We’re in a damp state right now because of inflation,” said Edgar Dworsky, a consumer advocate and former deputy attorney general in Massachusetts who has documented the reduction in inflation on his Consumer World website during decades.

Dworsky began noticing smaller boxes in the grain aisle last fall and the reduction in inflation has risen from there. You can cite dozens of examples, from Cottonelle Ultra Clean Care toilet paper, which has been reduced from 340 sheets per roll to 312, to Folgers coffee, which reduced its container size from 51 ounces to 43.5 ounces. , but still says it will make up to 400 cups. . (Folgers says he’s using new technology that results in lighter beans).

Dworsky said lowering inflation attracts manufacturers because they know customers will notice price increases, but will not keep track of net weights or small details such as the number of sheets on a roll of toilet paper. Businesses can also use tricks to divert attention from downsizing, such as marking smaller packages with bright, new labels that catch the eye of shoppers.

This is what Fritos did. Fritos Scoops bags marked with “Party Size” used to be 18 ounces; some are still on sale at a Texas grocery chain. But almost every other big chain now announces Fritos Scoops “Party Size” which are 15.5 ounces and are more expensive.

PepsiCo did not respond when asked about Fritos. But he did acknowledge the reduction in Gatorade bottles. Recently, the company began phasing out 32-ounce bottles in favor of 28-ounce bottles, which are cut in half to make it easier to retain. The change has been underway for years and is unrelated to the current economic climate, PepsiCo said. But he didn’t answer when asked why the 28-ounce version is more expensive.

Shampoo and paper products

Similarly, Kimberly-Clark, who does both Cottonelle and Kleenex, did not respond to requests for feedback on reduced packet sizes. Proctor & Gamble Co. he didn’t answer when asked about the Pantene Pro-V Curl Perfection Conditioner, which reduced the size from 12 liquid ounces to 10.4 liquid ounces, but still costs $ 3.99.

The best organic snacks on Earth’s sunny day went from eight bars per box to seven, but the price listed in several stores is still $ 3.69. Hain Celestial Group, the owner of the brand, did not respond to an email asking for feedback.

Some companies are simple about changes. In Japan, snack maker Calbee Inc. announced 10% weight reductions and 10% price increases for many of its products in May, including chips and crispy edamame. The company claimed a sharp rise in the cost of raw materials.

Domino’s Pizza announced in January that it would reduce the size of its chicken wings from 10 pieces to eight pieces for the same delivery price of $ 7.99. Domino’s cited the rising cost of chicken.

Common in price sensitive communities

In India, “downward change”, another term for reducing inflation, is done mainly in rural areas, where people are poorer and more price sensitive, said Byas Anand, head of corporate communications of Dabur India, a customer service and food company. In cities, companies simply raise prices.

“My company has been doing this openly for years,” Anand said.

Some customers who have noticed the reduction are sharing examples on social media. Others say lowering inflation makes them change their shopping habits.

Alex Aspacher does a lot of grocery shopping and meal planning for his family of four in Haskins, Ohio. He noticed when the one-pound packet of sliced ​​Swiss cheese he used to buy was reduced to 12 ounces, but kept its price at $ 9.99. Now, look for deals or buy a block of cheese and cut it yourself.

“Does it smell like” profit?

Aspacher said he knew prices would rise when he started reading about higher wages for grocery workers. But the speed of change, and the reduced packages, have surprised him.

“I was prepared for that to some degree, but so far there has been no limit,” Aspacher said. “I hope to find that roof very soon.”

Sometimes the trend can be reversed. As inflation slows down, competition could force manufacturers to lower their prices or reintroduce larger packages. But Dworsky says that once a product has become smaller, it often stays that way.

“The increase is a bit weird,” he said.

Hitendra Chaturvedi, a professor of supply chain management at WP Carey School of Business at Arizona State University, said she had no doubt that many companies are struggling with labor shortages and costs. higher than raw materials.

But in some cases, business profits, or sales minus the cost of doing business, also increase exponentially, and Chaturvedi finds this worrisome.

It points to Mondelez International, which had some heat this spring to reduce the size of its Cadbury Dairy Milk bar in the UK without lowering the price. The company’s operating income rose 21% in 2021, but fell 15% in the first quarter as cost pressures grew. In comparison, PepsiCo’s operating profit increased 11% in 2021 and 128% in the first quarter.

“I’m not saying they’re taking advantage, but it smells,” Chaturvedi said. “Are we using supply constraints as a weapon to make more money?”

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