From chips to cereal boxes, shoppers are noticing a subtle, yet significant shift in what’s on store shelves. Products are shrinking, but the price tags aren’t. Welcome to the world of shrinkflation – a tactic where businesses reduce product sizes or quantities while keeping prices the same. While it may seem like a smart strategy on paper, shrinkflation has the potential to create negative consumer perceptions, making it a psychological challenge for both shoppers and brands alike.
As the cost of goods continues to climb, brands are turning to shrinkflation to maintain profitability. However, as consumers catch on, this shift is beginning to shape their perceptions of trust, fairness, and value. In a world where every dollar counts, understanding how shrinkflation affects shoppers is crucial to not only surviving but thriving in a cost-conscious market.
Why Shrinkflation Feels Like a Betrayal
Shrinkflation may look like a clever pricing strategy, but it can erode trust with shoppers, especially when they feel they’re getting less for the same price. When consumers notice fewer chips in a "Party Size" bag or less cereal in the same box, frustration sets in. It’s not just about money – it’s about perceived fairness and trust. This reaction is deeply rooted in psychology, as shoppers feel they are being short-changed. A 2024 YouGov survey revealed that 82% of consumers are concerned about shrinkflation, with nearly half switching to generic or bulk options. This underscores a growing sentiment that consumers feel they are losing value.
The backlash from shrinkflation can be intense. Here’s why:
-
Diminished Value Perception: Shoppers are highly sensitive to any reduction in the value they receive. When product sizes shrink but prices stay the same, it triggers a strong sense of being short-changed – even if the difference is minimal. This is driven by prospect theory, which shows that people feel losses twice as strong as they feel equivalent gains. The result is often frustration and negative sentiment.
-
Consumer Confidence: Trust is essential to brand loyalty, and any lack of transparency can undermine that trust. Shoppers who perceive product adjustments – such as smaller sizes or formula changes – as deceptive or hidden may feel betrayed. This can damage their emotional connection to the brand and affect long-term loyalty.
-
Social Amplification: In today’s digital age, even a single viral post about a downsized product can ripple across platforms. These collective reactions amplify consumer dissatisfaction and shape public perception, potentially damaging a brand’s reputation quickly and broadly.
The Role of Packaging Design in Navigating Shrinkflation
While shrinkflation is a reality, it doesn’t have to negatively affect a brand’s perception. Smart packaging design and clear messaging can help mitigate the emotional impact of shrinkflation. In fact, packaging design offers brands an opportunity to not only maintain but build consumer trust. For example, brands can strategically call attention to the net weight of their product, particularly when it’s larger than a competitor’s, or highlight any changes in a competitor’s packaging to create a positive contrast.
One major barrier shrinkflation creates is confusion. When shoppers notice they’re getting less for the same price, they may feel uncertain about the fairness of the product’s value. If the rationale behind the change isn’t communicated clearly, consumers may perceive it as deceptive. Packaging that fails to explain or reframe the size change can further amplify this frustration.
However, shrinkflation doesn’t have to be positioned negatively. Smaller package sizes can be reframed as a positive, offering benefits like increased convenience, portability, sustainability, or even freshness. For busy shoppers, a smaller size may be perfect for on-the-go needs or ensuring the right amount for the occasion. By emphasizing these advantages in packaging and messaging, brands can help reduce negative emotional reactions and shift perceptions to a more positive light.
Applying the Behaviorally 4S Framework
The Behaviorally 4S Framework (Seen, Shoppable, Seductive, Selected) provides a powerful way for brands to navigate shrinkflation and ensure that their product remains top of mind for consumers:
-
Seen: When products shrink, their shelf presence may also be diminished. To combat this, packaging design should focus on visibility – using bold colors, distinct shapes, and strategic placement to ensure the product is easy to spot. Leveraging secondary panels, such as top panels and 5th panel risers, can help maximize real estate and create stronger navigational cues. Another strategy is flipping the back panel to function as the front, similar to razor blister packs that highlight features and benefits with a hero image. Additionally, billboarding techniques can be used to enhance visibility, ensuring that products stand out on crowded shelves and maintain strong design consistency across product lines.
-
Shoppable: To guide shoppers toward the right purchase, transparent messaging such as “Now More Eco-Friendly” or “Compact Size, Same Satisfaction” can help explain the reasoning behind shrinkflation. These labels reassure consumers that the change is for a good cause, such as sustainability, health benefits, or convenience. Additionally, ensuring the right variant or format is easily accessible in the brand block helps streamline the shopping experience, even when sizes have changed.
-
Seductive: The key to overcoming shrinkflation isn’t selling a smaller size – it’s reinforcing the product’s inherent value beyond price-per-unit comparisons. Packaging and messaging should connect with shoppers on a deeper emotional level, tapping into Higher Order Goals (HOGs) like accomplishment, security, connection, and reward. When a product fulfils these emotional needs, shoppers perceive it as worth the price, regardless of size. Premium design, compelling storytelling, and value-driven messaging should emphasize why the product remains a meaningful choice – one that delivers more than just what’s inside the package.
-
Selected: In today’s economy, cost-per-unit value remains a critical factor in purchase decisions. While shoppers seek emotional value, the rational side of the brain still calculates unit price, making transparency essential. Packaging should clearly communicate the product’s value, reinforcing why it’s worth the price beyond just the numbers. Highlighting competitive unit pricing where applicable, or emphasizing added benefits, can strengthen perceived value. Additionally, when products are on sale, displaying the cost-per-unit alongside the promotional prices helps shoppers easily assess savings – ensuring they feel confident in their choice while still recognizing the product’s overall worth.
Final Thoughts: Packaging Design as a Trust-Building Tool
Shrinkflation isn’t just a pricing strategy – it’s a psychological challenge for both brands and consumers. The key to navigating this challenge lies in understanding the deeper emotional needs that drive consumer decisions. While size, amount, and price are key functional factors, it’s the emotional drivers that truly unlock value.
Brands must tap into these higher-order emotional needs, such as pride, connection, specialness, reward, recognition, and control/security. By understanding and addressing these emotional triggers within their target market, brands can appeal to consumers’ deeper motivations and encourage them to pay more for the product, regardless of unit price. This is the key to avoiding commoditization and ensuring that brands remain relevant in an increasingly cost-conscious market.
In the end, consumers will pay more for a product if it meets their emotional needs, even if the size has shrunk. By dialing in on the right emotional drivers and positioning shrinkflation strategically, brands can thrive and continue to build trust, despite the challenges posed by this pricing tactic.
At Behaviorally, we help brands understand these behavioral triggers so you can optimize packaging, design, and messaging that keeps consumers on your side.
Want to learn how Behaviorally’s insights can help you navigate shopper behavior shifts like shrinkflation? Get in touch with us today!
THE AUTHOR
Sheryl Brie is a Senior Vice President, Head of Behavioral Qualitative at Behaviorally. With over two decades in market research and spending her recent 14 years working in CPG shopping and packaging insights, she has conducted over 500 research projects and has spoken to more than 10,000 individuals about their shopping decision process. She is a behavioral science geek and is fascinated with how human perceptions filter their world and guide their choices and behaviors. Brie is also a recent empty nester with two adult children. Her daughter is following in her footsteps and is also in the market research industry. Her son is a U.S. Marine.
