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