If you’ve ever wondered whether that family-size cereal box is getting a little less family-friendly, you’re not alone. A report from Purdue University confirms what eagle-eyed shoppers have long suspected: our groceries are going on an unprecedented diet. In fact, over three-quarters of American consumers report noticing their favorite food products shrinking while prices stay the same. This practice, known as “shrinkflation,” has become increasingly prevalent in grocery stores across the nation, with snack foods being the primary culprit of this subtle downsizing strategy.
The October 2024 Consumer Food Insights report, conducted by Purdue University’s Center for Food Demand Analysis and Sustainability (CFDAS), found that 77% of consumers have noticed shrinkflation in their grocery purchases over the past 30 days. The findings paint a picture of widespread awareness among shoppers, though many may still be missing the signs of this stealth price increase tactic.
Snack foods lead the pack as the most commonly noticed category affected by shrinkflation, with 78% of respondents reporting smaller portions in their favorite treats. Following closely behind are packaged desserts and sweets at 53% and frozen foods at 48%. The trend appears to be particularly noticeable to households with children, who report seeing shrinkflation across a broader range of product categories compared to households without children.
While consumers are becoming increasingly aware of shrinkflation, they may not be equipped to detect it effectively. The study revealed that while 82% of shoppers regularly check the overall price of items they’re buying, only about half consistently check the unit price or product weight – key indicators that would help spot shrinkflation in action. This disconnect between price awareness and size awareness may explain why many instances of shrinkflation go unnoticed until the change becomes obvious.
“A variety of factors may influence a producer’s decision to downsize a product’s size, such as rising costs in the supply chain and inflationary pressures,” explains the report’s lead author, Joseph Balagtas, a professor of agricultural economics at Purdue and director of CFDAS, in a media release. “The goal is to better understand how consumers perceive these reductions and if they have noticed them happening at all.”
The research team put consumers to the test with a theoretical scenario: Would they prefer their favorite snack to maintain its current price of $3.00 but decrease from 6 ounces to 5 ounces, or keep the 6 oz size but increase to $3.60? Interestingly, despite the identical unit price in both scenarios, 53% of respondents chose the size decrease over the price increase. This preference suggests that psychological factors may be at play in how consumers perceive and react to different types of price adjustments.
The study also uncovered strong feelings about corporate transparency when it comes to shrinkflation. Three-quarters of consumers believe companies should be legally required to clearly label when products have been reduced in size or quantity. Many view shrinkflation as a profit-driven strategy rather than a necessary response to rising costs, with a majority agreeing that companies use it to increase profits even when cost pressures aren’t present.
This skepticism appears to have potential consequences for brand loyalty. A significant portion of consumers reported being less likely to trust brands that practice shrinkflation, and many indicated they would switch to different brands if they noticed their regular products shrinking. This suggests that while shrinkflation might help companies maintain profit margins in the short term, it could risk damaging customer relationships in the long run.
“It is interesting yet not entirely surprising to see this sentiment as articles about grocery prices, accusations of corporate greed and shrinkflation continue to circulate in popular news media,” notes Balagtas.
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