Shrinkflation: smaller products hurt some households more than others – and can be bad for business
UK inflation may be easing, but many households still find their weekly shop getting more expensive. One key reason is something not captured in headline prices: shrinkflation, where manufacturers reduce pack sizes without reducing the price.
Shrinkflation has become more common thanks to the steep increase in the cost of living in recent years. A 2025 YouGov survey found that 80% of UK adults are “very” or “fairly” concerned about shrinkflation – up from 75% in 2023. But the same survey found that fewer consumers are changing habits to avoid it.
At the same time, grocery inflation was 5.1% in the year to November 2025, with staples such as chocolate shrinking or rising sharply in unit cost.
Shrinkflation is more than an annoying ruse by businesses. It’s a hidden redistribution of value from consumers to companies, and one that disproportionately affects lower-income households.
Shrinkflation is increasingly used as a strategy to pass rising production costs on to consumers in a way that is less noticeable than a direct price increase. This concept is well recognised in economics, although still poorly understood by much of the public.
Evidence of shrinkflation in the UK is widespread. A 2024 analysis found that, by weight over the past decade, packets of digestive biscuits shrank by 28%, crisps by 17%, butter packs by 20% and breakfast cereals by 10% or more. Some brands have been bolder and have even reduced © The Conversation
