Shrinkflation, the practice of reducing a product's size while maintaining or increasing its price, has become a widespread strategy among manufacturers. This can result in consumers paying more per gram for items, such as Pringles, which saw a 118% increase in price per gram after its contents were cut from 200g to 165g.
Companies often employ shrinkflation to protect profit margins and avoid the potential backlash from openly raising prices. This tactic relies on the observation that shoppers are generally more sensitive to the price displayed on the shelf than to slight changes in product weight or volume.
However, the environment around shrinkflation is evolving. Consumers are becoming more aware of the practice, and retailers are increasingly focusing on value perception. In the UK, new reforms to the Price Marking Order, effective from April 2026, will mandate clearer and more consistent display of unit prices, making it harder for manufacturers to rely on shrinking packs without attracting scrutiny.