The Curious Case of Shrinking Carts: How Shrinkflation Makes You Pay More for Less in 2025

The Curious Case of Shrinking Carts: How Shrinkflation Makes You Pay More for Less in 2025

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"Is it just me, or have these chips become fewer?" If you've had that thought lately while munching on your favorite ₹10 snack, congratulations — you’ve just encountered shrinkflation, the invisible price hike of our times.

In 2025, Indian households aren’t just fighting inflation — they’re dealing with a stealthier enemy: shrinkflation. While prices may seem stable on the surface, the quantity or quality of what we get has quietly eroded. From biscuits and soaps to shaving cream and even detergent, the Indian market has shrunk — not in sales, but in size.

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🏪 What is Shrinkflation?

Shrinkflation is the phenomenon where products shrink in size or weight but are sold at the same price — a clever way for companies to manage rising production costs without increasing the MRP. Think of it as inflation in disguise. While inflation is monitored and widely reported, shrinkflation often goes unnoticed by the average consumer.

Example: A 100-gram packet of chips is now 85 grams — but still costs ₹20. That’s a 15% invisible hike.

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📉 The Numbers Don’t Lie — But They Do Hide

India's Consumer Price Index (CPI) in April 2025 stood at 4.83%, slightly down from 5.1% in March. But consumer experience tells a different story. A survey by LocalCircles in early 2025 showed that 68% of Indian households believe they are getting less value for money now than they did a year ago — even if prices appear unchanged.

And they're not wrong. According to a study by the RBI in 2024, nearly 40% of FMCG products underwent size reductions in the last 12 months, primarily in the price-sensitive ₹5–₹20 range.

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🛒 Shrunk and Shaken: Real-Life Product Changes

If you think it’s all in your head, let’s walk down the grocery aisle together. The beloved Parle-G biscuit pack that used to weigh 100 grams in 2023 has slimmed down to 92 grams in 2025 — still priced at ₹10. Lays chips, once a 90-gram indulgence, are now sold at 75 grams for the same ₹20 tag. Lux soaps that were a full 100 grams have become 85 grams, costing you ₹25 with less lather. Even Surf Excel detergent, once reliably packaged at 1 kilogram, has been subtly reduced to 950 grams while maintaining the same ₹230 price point. These size cuts translate to hidden price increases ranging from 5% to as much as 20% — all without the label shouting it out.

And it’s not just size — some brands have switched ingredients or reduced quality, making the value erosion even more subtle.

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🍽️ The Impact: Middle-Class and Poor Hit Hardest

For an urban middle-class family that survives on a monthly grocery budget of ₹8,000–₹10,000, this slow erosion is like a leak in a bucket. It’s not noticeable at first — but over months, their pantry starts feeling emptier.

The rural and economically weaker sections, who rely heavily on subsidized or economy-range products, are doubly affected. Packaged goods once considered reliable staples are no longer enough for a family of four.

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🧠 Psychology at Play: Why We Rarely Notice It

Shrinkflation thrives on human psychology. We focus more on price tags than weight labels. If the packaging remains the same size and the branding unchanged, our minds rarely register the difference. This is why brands carefully redesign packets to “look full,” even if they contain less.

As economist Richard Thaler once joked, “It’s the only magic trick where you pay the same to see less of the show.”

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📜 Is It Legal? Yes. Is It Ethical? Debatable.

In India, there are no specific legal restrictions against shrinkflation — as long as the new quantity is correctly labeled. The Legal Metrology Act, 2009 mandates disclosure, but there’s no obligation to maintain the previous size or alert consumers.

In contrast, countries like the UK require public announcements or visible "new size" markings when size reductions occur.

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🧾 The Hidden Math Behind a ₹10 Biscuit Packet

Let’s say a company makes ₹2.50 profit per ₹10 biscuit packet. With rising flour and sugar prices, instead of raising the price to ₹11 — which could alienate consumers — the company simply reduces net weight by 10 grams. Consumers don’t complain, and margins remain intact. A win-win… except for the buyer.

This is why shrinkflation is often the first step in inflation control strategies, especially in FMCG.

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🧃 Quality Creep: Shrinkflation’s Evil Twin

There’s another cousin of shrinkflation called "quality fade" — where the product size remains unchanged, but ingredients are downgraded. Fruit drinks contain less pulp. Tomato ketchup becomes thinner. Soap doesn’t last as long. This, too, has seen a quiet rise.

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🇮🇳 What Can India Do?

Experts suggest a multi-pronged approach:

Mandatory disclosure labels for reduced-size packaging (as done in parts of Europe).

Consumer awareness campaigns through the Ministry of Consumer Affairs.

Encouraging unit pricing — price per 100 grams/litre — on product shelves, so consumers can compare easily.

Meanwhile, household WhatsApp groups have started doing their bit. Aunties and uncles now post “shrinkflation alerts” like detectives of the grocery aisle.

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😂 A Light Note to End With

In 2023, you said: “₹10 is enough for a snack.”

In 2025, you say: “₹10 is enough for hope.”

In a world where prices inflate and portions deflate, the Indian consumer continues to adjust — cutting coupons, bargaining harder, and choosing smarter.

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So next time your packet feels light, remember: the economy might just be playing hide and shrink.