What is shrinkflation?
Shrinkflation is a stealthy pricing tactic. It’s when companies reduce the quantity or size of a product while keeping the price the same, creating a hidden (relatively speaking) increase in the unit cost for consumers.
It’s an attempt at disguised inflation. Rather than hiking the price (the numerator), they shrink the amount you get (the denominator).
Shrinkflation peaks when producers face rising input cost. Instead of raising prices, they quietly downsize products, often under the threshold of what shoppers notice. Although it seems that shrinflation and price increases can go hand in hand.
For example, the size of a bar of chocolate may slowly decrease over time. A jar or container of a food item will suddenly contain far less content. The amount of packets of dishwasher agent inside of a tub will be smaller in size or fewer in amount.
This tactic isn’t new. Brands have long relied on consumer inattention to quantities to protect profit margins. In fact, shrinkflation’s origins date back to 13th-century England, where bakers were fined for selling smaller loaves of bread to maintain price controls.
When did it pick up in Canada?
Shrinkflation became especially noticeable in Canada over the past few years amid rising grocery prices. By 2023–2024, consumer frustration was so widespread that Ottawa launched a Grocery Task Force to monitor retail practices, including shrinkflation.
Last year, more and more news headlines describe the ramp up of shrinkflation. Customers were catching on to how bottle and container sizes started to decrease alongside the amount of produce placed inside them.
Outrage and frustration started build across the country with Canadians banding together to boycott Loblaws. The movement developed within a reddit group called r/Loblawsisoutofcontrol, noting sky-high price and highlighting shrinkflation as a serious problem.
How to spot shrinkflation
- Check the unit price (cost per ounce, sheet, gram). If the package size shrinks but the per-unit price climbs, that’s shrinkflation.
- Compare packaging—same box look, but weirdly shallower or lighter. Think a taller, thinner container or deeper dimples in jars.
- Watch sheet or weight counts. For instance, paper towel rolls down from 340 to 312 sheets or cereal reduced by a few ounces.
- Stay informed via news, forums, consumer groups. Canadians are increasingly sharing shrinkflation finds and publishers are calling attention to the issue.
Combatting shrinkflation
- Buy in bulk: Larger generic or club-size packs often preserve value better than downsized single-use bags.
- Shop farmer’s markets or local co-ops: Bypass pre-packaged shrinkflated goods altogether, which are most often cheaper and fresher.
- Switch to store brands or off-brands: These are less equipped to frequently tweak packaging and sizes, so you often get more for your dollar.
- Use unit price tags in-store: Some grocers display cost per unit prominently, helping you compare even when labels are misleading.
- Lean on transparency and advocacy: Support labeling laws, or push for policies like Canada’s Grocery Task Force initiatives.
- Adapt cooking when necessary: If ingredients shrink, use a kitchen scale or buy a little extra to get the same amount needed for recipes.
Shrinkflation has a direct impact on purchasing power. By staying alert, comparing unit costs, supporting policy changes, and choosing smarter shopping options, Canadians can soften the blow and make sure “less” doesn’t mean “more expensive.”
For more lifestyle tips and spending strategies, click here.
Image source: “Shrinkflation” by Brett Jordan, CC by 2.0
