Shrinkflation in India: The Hidden Price Increase Most Consumers Don’t Notice
By GrowConsumer Hub | Published on February 15, 2025
In This Article
Introduction
Have you ever felt that your grocery bill is increasing even though prices look the same? You're not imagining it. This silent phenomenon is called shrinkflation.
The biscuit packet looks familiar, the soap costs the same, and the snack still says “₹10” — yet somehow, you feel you’re getting less value for your money. Shrinkflation is one of the most common but least discussed forms of price increase in India today.
What Is Shrinkflation?
Shrinkflation occurs when the price of a product stays the same, but the quantity or size is reduced. In simple terms: You pay the same amount, but you get less. There is no visible price hike, but the price per gram or per unit increases silently.
The Power of the Stealth Hike
Shrinkflation works because companies know human psychology. Most consumers check the price tag first, rarely auditing the net quantity. Small reductions (like 10g off a 100g pack) often go completely unnoticed, protecting psychological price points like ₹10 or ₹20 that are anchors for the Indian middle class.
Real Indian Examples
Biscuits & Snacks
Many popular ₹10 packs that used to weigh 100g have silently moved to 80g-85g. Same box dimensions, less content.
Soaps & Hygiene
Standard 125g soap bars are frequently reduced to 100g. Shampoo bottles often drop from 200ml to 180ml while retaining the bottle height.
Why Companies Use It
- Extreme Price Sensitivity: In India, a ₹2 increase on a staple can cause massive brand switching. Shrinkflation avoids this immediate friction.
- Rising Input Costs: When the price of palm oil, wheat, or fuel rises, companies must protect margins. Quantity reduction is the path of least resistance.
- Psychological Barriers: Crossing the ₹10 or ₹50 mark is a significant barrier. Shrinkflation keeps these price points intact.
Shrinkflation vs. Inflation
| Aspect | Inflation | Shrinkflation |
|---|---|---|
| Price | Increases | Stays Same |
| Quantity | Same | Reduced |
| Visibility | High | Low |
| Reaction | Immediate | Delayed |
Is It Legal?
In India, shrinkflation is not illegal as long as the net quantity is accurately printed on the label. Indian consumer laws prioritize transparency over price control. However, misleading packaging (making a pack look much larger than its content) can be challenged under consumer protection rules managed by the Department of Consumer Affairs.
Practical Identification Tips
- ✅ Check Net Quantity: Ignore the box size; look for grams/ml.
- ✅ Calculate Price Per Unit: Compare ₹ per 100g or ₹ per Litre.
- ✅ Watch for "New & Improved": Often marketing code for a smaller pack.
Can Consumers Take Action?
Yes, by becoming Quantity-Conscious. Reward brands that maintain value and switch to larger "family packs" where shrinkflation is less aggressive than in small SKUs. Spread awareness; informed consumers put indirect pressure on corporations to maintain transparency.
Quantity Never Lies
Prices can lie and discounts can mislead, but the weight on the label is the ultimate truth. Don't ask "How much does it cost?", ask "How much am I really getting?"