From toilet paper to yogurt to corn chips, manufacturers are quietly shrinking package sizes without lowering prices. It's dubbed 'shrinkflation,' and it's accelerating worldwide.
From toilet paper to yogurt and coffee to corn chips, manufacturers are quietly shrinking package sizes without lowering prices. It's dubbed"shrinkflation," and it's accelerating worldwide.
"It comes in waves. We happen to be in a tidal wave at the moment because of inflation," said Edgar Dworsky, a consumer advocate and former assistant attorney general in Massachusetts who has documented shrinkflation on his Consumer World website for decades. That's what Fritos did. Bags of Fritos Scoops marked"Party Size" 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"Party Size" Fritos Scoops that are 15.5 ounces — and more expensive.
Some companies are straightforward about the changes. In Japan, snack maker Calbee Inc. announced 10% weight reductions — and 10% price increases — 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. 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.
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.Hitendra Chaturvedi, a professor of supply chain management at Arizona State University's W.P. Carey School of Business, said he has no doubt many companies are struggling with labor shortages and higher raw material costs.
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