A recent analysis report has shown that Americans are facing pressures from an insidious form of inflation known as shrinkflation. Some products have not seen price increases but have quietly reduced in size or weight, leading consumers to feel deceived.
According to a report released by the online financial company “LendingTree”, after analyzing nearly 100 products, it was found that one-third of them have shrunk in weight or size. This means that manufacturers are covertly raising the prices of products, ultimately causing consumers to pay more.
The report reveals that among the 98 products analyzed by the company’s researchers, one-third had experienced shrinkage. Household paper products (including toilet paper and paper towels) had the highest proportion of shrinkage. Among the 20 household paper products tracked, 60.0% of them had reduced in paper quantity.
In addition to household paper products, breakfast foods are most likely to suffer shrinkage. Out of the 16 cereal products analyzed, 43.8% of them had shrunk since 2019 or 2020.
Interestingly, the price increase between a product that has shrunk and one that hasn’t is nearly the same. Moreover, shrinkage and price hikes are separate issues. Some products have quietly shrunk while their prices have also increased.
The majority of Americans have already noticed or experienced shrinkflation. 71% of Americans stated that they have experienced or noticed a product shrinking incident in the past year, while 57% said they have experienced or noticed multiple events of this kind in the past year.
Americans feel misled by shrinkflation. Among those who noticed the shrinkage phenomenon, 82% said they felt deceived seeing such situation, and 66% said they stopped buying the product because of it.
Consumers don’t just focus on prices. 89% of Americans either always or sometimes compare the sizes or weights of different brand products while shopping. Many Americans mentioned they would prefer companies to raise prices (38%) rather than reducing sizes or weights (28%) if they had to choose between shrinkage and inflation.
Matt Schulz, Chief Credit Analyst at LendingTree, commented, “People are already frustrated with rising prices. Shrinkflation is just rubbing salt in the wound. With all these factors combined, many Americans feel the pressure of buying essential items every month.”
This analysis sheds light on the growing trend of shrinkflation, emphasizing the importance of consumer awareness and choice in the face of subtle price shifts in the market.