Shrinkflation and Skimpflation Explained: What You Need to Know

Have you noticed your favorite cereal box feels lighter? Or that your go-to chocolate bar seems smaller, yet you're still paying the same price?

You're not imagining things. That's shrinkflation and skimpflation. Two quiet trends reshaping your grocery bill without you even noticing.

In this guide, you'll learn what these terms mean, see real examples from brands you know and discover practical strategies to protect your wallet without overhauling your entire shopping routine.

What's shrinkflation?

Shrinkflation occurs when companies reduce the size or quantity of a product while maintaining, or sometimes even increasing, the price. It's essentially a hidden price increase that flies under most consumers' radar.

Instead of raising the price of a product from $4.99 to $5.99 (which you'd definitely notice), brands simply give you less product for the same $4.99. Same package, same shelf space, less food.

According to the UK's Office for National Statistics, analysis of their consumer price tracking between September 2015 and June 2017 identified 206 unique products that shrank in size, with the majority being food and drink items. Across the broader period of January 2012 to June 2017, ONS price collectors recorded 2,529 instances where tracked items had shrunk; many of these are the same products appearing in multiple store locations.

What's skimpflation?

While shrinkflation reduces quantity, skimpflation compromises quality. The package size stays the same, but what's inside changes, usually not for the better.

How skimpflation shows up in your food

Skimpflation can look like:

• Ingredient substitution: Replacing real cocoa butter with palm oil in chocolate products
• Recipe reformulation: More water, less juice in your "juice drink"
• Lower-grade inputs: Switching from premium to standard-grade flour or meat cuts
• Reduced add-ins: Fewer chocolate chips in your cookies, less fruit in your yogurt
• Service quality decline: Fewer staff at restaurants, longer wait times, reduced portions

A 2024 study found that consumers judge skimpflation as more unfair than shrinflation when they notice them because quality changes feel more deceptive and are a more fundamental change to the product itself.

Shrinkflation vs Skimpflation: What's the Difference?

Both are responses to rising costs but they impact you differently. Shrinkflation affects your budget more directly (you're buying more often), while skimpflation can affect your health and satisfaction.

Why are shrinkflation and skimpflation happening now?

These tactics aren't new but they've accelerated dramatically over recent decades and here's why:

1. Rising costs of production

Since 2020, food manufacturers have faced higher ingredient costs for key commodities like wheat, cocoa and oils. Manufacturing and transportation energy costs also surged. Add labor shortages and wage increaments across food production chain to the mix. Not to talk of increased prices of packaging materials.

2. Consumers are sensitive to price

Most consumers notice price increases more readily than size reductions. And some shoppers would gladly switch brands over the slightest prices increases especially for everyday items that don't need a lot of effort to get. And most won't even notice (at least at first glance) if a product has reduced in quantity or quality. This makes shrinkflation and skimpflation more attractive than direct price hikes.

3. Pressure from the competition

In crowded categories like snacks and beverages, shelf price is everything. Brands fear that raising prices will drive customers to competitors or store brands, so they opt for subtler adjustments instead.

How shrinkflation and skimpflation affect you

Shrinkflation affects your budget

When your cereal box shrinks from 900g to 800g but costs the same, you're effectively paying same for 11% less product. Across your entire grocery basket and over time, these incremental changes add up. You could easily spend an extra $350 annually on products due to shrinkflation alone. Because now, you have to buy more to get the quantity you need.

Skimplation could have health implications

Skimpflation poses particular concerns such as lower nutritional value, more additives and ultra-processed ingredients. All these have direct impact on health. For instance, if a fruit juice now has more water than real juice with sugars, colors and other fillers added to make up for the real juice, that definitely poses a risk, especially to people with certain pre-existing health conditions.

Both affect consumer trust

These practices erode consumer confidence. When you feel misled about what you're buying, it damages the relationship between you and brands, even ones you've trusted for years.

Are shrinkflation and skimpflation legal?

Yes, both practices are generally legal. Companies can change product sizes and formulations as long as:

• changes don't violate food safety or labeling regulations
• the weight/volume is accurately stated on the package
• ingredient lists reflect actual contents

However, legality doesn't mean these practices are ethical or transparent. In France, the government introduced legislation in 2024 requiring retailers to clearly indicate when products have undergone shrinkflation. Similar discussions are happening in other countries, though most have not enacted specific regulations.

How to spot shrinkflation and skimpflation

For shrinkflation

• Check the unit price: this shows cost per gram/ounce/pound/liter etc. Compare your current purchase to previous receipts.
• Compare package weight: look at the net weight on the label, not package size. Brands often keep outer packaging the same size while reducing contents.
• Notice the gaps: if your chip bag or cereal box seems unusually empty, check if the weight has changed.
• Watch for package redesigns: companies often introduce shrinkflation alongside a "new look" to distract from size changes.

For skimpflation

• Read ingredient lists carefully: note the order (ingredients are listed by weight). Has water moved up? Has a premium ingredient moved down or disappeared?
• Trust your taste: if something tastes different, seems thinner or has a different texture, it probably is different.
• Watch for vague language: terms like "made with real fruit" or "contains [ingredient]" can signal reduced quantities.

How to find your way around shrinkflation and skimpflation

These two situations have been the trend in recent decades and it seems they'll continue to be for a while, at least as cost of inputs continue to implode. Here are 6 ways to literally survive these two situations:

1. Master unit price shopping

Might seem undoable but unit pricing is your best defense. Every store shelf tag shows the price per standard unit (gram, ounce, pound, liter). This lets you compare products across brands and sizes accurately. To prevent overwhelm, do this for just 3 brands of foods or ingredients you buy often or in bulk. For example, rice.

Pro tip: A "sale" might not be a deal if the unit price hasn't actually dropped

2. Diversify your brand loyalty

Don't stay with brands that are shortchanging you. Smaller or regional brands often maintain quality and quantity better than large chains because they usually have closer relationships with customers, can't afford a reputation hit and often compete on value rather than marketing.

Try rotating 2-3 brands for your staple items to see which offers the best real value

3. Buy whole foods as much as you can

Shrinkflation and skimpflation primarily affect processed and packaged foods. When you buy fresh produce, bulk grains and legumes, whole cuts of meat and unprocessed dairy..., you're buying by actual weight, making these tactics impossible. Yes, prices for these items fluctuate too, but at least you can see exactly what you're getting.

Plus whole foods mostly have optimal nutrition

4. Read food labels

Make it a habit to check net weight, ingredient list (especially the first 5 ingredients) and serving size (companies sometimes make servings smaller to keep calorie counts low). This takes an extra 30 seconds but can save you from buying diluted, downsized or reformulated products.

5. Support transparent brands

Some companies communicate openly about changes. When a brand says "due to rising costs, we're adjusting our product size/price," that's honesty worth rewarding with your business. Consider brands that announce changes on packaging or their website, maintain ingredient quality even when adjusting size and offer direct-to-consumer options that cut out middleman costs.

6. Consider making it yourself

For certain categories or foods, DIY makes health and financial sense. Soups, stews & sauces, some snack mixes, fresh fruit juice, smoothies, seasoning mixes and baked goods like whole wheat bread are foods you can easily make. Note that with this, you're not necessarily making all of your owns foods. But even replacing 2 or 3 shrinkflated or skimpflated items you buy regularly can make a difference on your wallet or health.

Which product categories are most affected by shrinkflation and skimpflation?

Based on consumer reports, market analysis and observations, these categories are impacted as follows:

Most affected products

• Snack foods (chips, crackers, cookies)
• Tomato paste, sauces & condiments
• Yogurt and dairy products
• Packaged bakery items
• Chocolate and candy
• Pasta & rice products
• Packaged beverages
• Canned goods
• Ice cream
• Cereal

Least affected products

• Eggs (sold by count)
• Fresh produce (sold by weight)
• Fresh meat and seafood (sold by weight)
• Bulk bin items like grains, nuts, dried fruits (dispense quantity you want)

It comes down to being aware first

Shrinkflation and skimpflation aren't going away anytime soon. As long as companies face cost pressures and consumers remain price-sensitive, these tactics will persist.
But you can also always figure your way around it if you want to. Understand what to look out for, read food labels, DIY as you can. Start with just one of your most frequently purchased items. Notice any changes and adjust your choices accordingly.