Shrinkflation: An Overview of Causes, Impacts, and Consumer Perceptions

Shrinkflation refers to the reduction in product size or quantity while maintaining the same price. It is a decision often made as a response to rising production costs and inflationary pressures. This thesis explores the prevalence of shrinkflation in India, examining its underlying causes, socio-economic impacts, and consumer perceptions. The study highlights how companies in sectors like food, beverages, and fast-moving consumer goods (FMCG) adopt shrinkflation to maintain profit while facing inflation. But sometimes it is often linked with deception as it lacks transparency to the consumer about reduction in quantity. This study uses mixed-methods approach which has quantitative and qualitative data. The paper tries to investigate the underlying factors which contribute to shrinkflation, its effects on consumers. It tries to study public's awareness and attitudes towards this practice. By analysing consumer awareness and regulatory frameworks, the research focuses the need for greater public education and policy interventions to address the adverse effects of shrinkflation on Indian households. Furthermore, it examines the role of regulatory mechanisms such as the Consumer Protection Act in safeguarding consumer interests and promoting transparency.