Key insights
-
1
Shrinkflation Explained
Shrinkflation is a strategy used by companies to cope with increased production costs without raising prices, by reducing the size or quantity of their products.
-
2
Consumer Impact
Consumers often do not notice the subtle changes in product sizes, leading to a perception that prices are stable, even though they are effectively paying more for less.
-
3
Market Response
Manufacturers argue that reducing product size is a more palatable alternative to raising prices, which can deter purchases and reduce demand.
Takeaways
The shrinking size of toilet paper rolls is part of a broader trend known as shrinkflation, where companies reduce product quantities to manage rising costs without increasing prices. This strategy affects various consumer goods and impacts consumer perception and spending, highlighting the complex dynamics between production costs, pricing, and consumer behavior.