What is Weber's just noticeable difference and why does it matter here?

Weber's law states that a change must reach a certain percentage before most people notice it. In shrinkflation, this threshold helps explain why brands can shrink products without most customers noticing right away, enabling profit margins to grow subtly.

What are greedflation and skimpflation, and how do they differ?

Greedflation describes profits rising faster than inflation due to corporate pricing power, while skimpflation refers to lowering the quality or amount of ingredients to cut costs. Both phenomena can raise consumer costs without a corresponding improvement in value.

Which brands were mentioned as shrinking products in recent years?

Brands cited include Kleenex, Charmin, Nestlé (as a general example), Simply Orange, Crystal Light, and Bounty, among others. These examples illustrate the trend of reducing quantity or packaging while maintaining or increasing price.

What did the article say about inflation perceptions across countries?

A 2024 overview highlighted that people in the UK, France, Germany, Canada, and the Netherlands were particularly vocal about inflation. Across 33 countries, roughly 46% noticed shrinkflation where prices stayed the same.

What practical steps can consumers take to combat shrinkflation?

Consumers can compare price per serving, use loyalty programs, buy on sale, check weekly flyers, and use rebate apps to maximize value. Staying aware and comparing value beyond package size helps maintain purchasing power.

What is the overall takeaway and future outlook shared in the video?

The video suggests that shrinkflation and related practices reflect broader economic dynamics, including currency erosion and regulatory responses. It advocates awareness and market-driven pressure toward fairer, higher-quality products.

How Scamming Consumers Became Normalised

ColdFusion

Science & Technology4 min read20 min video

Nov 27, 2025|624,347 views|23,426|3,197

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Key Moments

TL;DR

Shrinkflation and greedflation explain why you feel ripped off by everyday goods.

Key Insights

Shrinkflation is the practice of keeping prices the same while reducing the quantity or size of products, a tactic that has grown more aggressive over several decades.

Just noticeable difference (JND) means consumers often don’t notice small changes in packaging or weight unless the change passes a certain threshold, making shrinkflation effective at hiding price hikes.

Greedflation describes how corporate profits can drive inflation beyond rising input costs, with data suggesting a sizable portion of observed price increases come from profit margins rather than costs alone.

Skimpflation refers to lowering the quality of ingredients or components (e.g., Coke switching from sugar to HFCS) while maintaining prices, further eroding perceived value.

Policy responses vary globally (labeling, fines, and consumer protections), but the broader fix may require increased awareness, regulatory action, and market pressure from informed consumers.

Consumers can counter shrinkflation with practical strategies (price-per-serving comparisons, loyalty programs, buying on sale, and checking discounts) while broader monetary and currency reforms historically influence price dynamics.

INTRODUCTION: THE BAG OF AIR, A QUIET INJUSTICE

The episode opens with a relatable tension: a bag of chips that weighs less than expected, a metaphor for shrinking products that keep prices steady. This isn’t just a quirky observation—it's a systemic practice called shrinkflation. The host situates shrinkflation as a symptom of broader economic shifts: persistent inflation, supply chain pressures, and the modern currency environment. The narrative frames shrinkflation as a quiet form of consumer deception, one that compounds over time as households contend with long hours, debt, and rising living costs, inviting viewers to question who bears the true burden of higher prices.

WHAT IS SHRINKFLATION AND WHY IT MATTERS

Shrinkflation is defined as reducing the quantity or size of a product while keeping its price the same. The video catalogs concrete examples: Kleenex shrinking from 65 tissues to 60, Charmin’s sheets shrinking by a substantial margin since the 1960s, and other staples like Simply Orange shrinking from 52 oz to 46 oz or Bounty rolls dropping from 135 to 123 sheets. These adjustments aren’t isolated; they occur across food, household goods, and beyond. The central issue is the cumulative effect: small changes stacked over many products translate into meaningful real-world losses for consumers, especially when inflation remains elevated.

THE PSYCHOLOGY OF CHANGE: JUST NOTICEABLE DIFFERENCE

A key mechanism behind shrinkflation is the just noticeable difference (JND). Humans only perceive changes that cross a threshold, which varies by sense and object. For snacks like Doritos, weight changes around 13% can go unnoticed, allowing corporations to quietly shrink products without triggering visible consumer backlash. The video links this to more dramatic online examples—packaged goods that appear normal but contain noticeably less. This psychological blind spot helps explain why shrinkflation can be rampant even as shoppers feel thinned wallets and search for value.

GREEDFLATION AND THE RISE OF SKIMPF

Beyond shrinkage, the video introduces greedflation—a term used to describe profit-driven price increases that outpace input costs. Data from think tanks suggests that after peak inflation, corporate profits contributed a significant portion of price rises. The narrative cites international examples: UK firms posting margins well above pre-pandemic levels, Australian profits accounting for a large share of inflation above targets, and Canada showing elevated after-tax profits since 2019. Skimpflation is also discussed, with Coke’s historical shift from sugar to high-fructose corn syrup serving as a classic example of lowering product quality while prices stay constant. These phenomena together frame a picture of price increases that aren’t solely about raw materials or supply disruptions.

GLOBAL RESPONSES AND REGULATORY MOVES

Governments have begun to push back in some jurisdictions. Korea has threatened fines for failing to label shrinkflation for months, signaling a willingness to penalize deceptive practices. In Australia, regulators are reviewing unit pricing and considering public accountability for brands that shrink without clarifying price. The UK and other regions show growing attention to corporate profits as a driver of inflation, prompting watchdogs to scrutinize consolidation and pricing power in various sectors, including veterinary practices and car dealerships. The Shrinkflation Prevention Act (in the U.S. context) exemplifies ongoing attempts to curb deceptive packaging, even if such measures have faced legislative hurdles.

CURRENCY, POLICY, AND THE BIG PICTURE

The video steps back to a macro perspective: currency systems and monetary policy underpin rising prices. Since 1971, the global move away from gold-backed currencies created a regime where governments can print money more freely. Even when input costs recede, prices don’t always follow down in tandem, contributing to a perception of systemic overcharging. The host suggests that shrinkflation and related practices may persist unless currency and monetary frameworks are reexamined, highlighting a tension between consumer protections and macroeconomic policy.

WHAT CONSUMERS CAN DO AND THE BROADER HOPE

Acknowledging the problem is the first step, but the video emphasizes practical consumer actions: compare price per serving, watch for sale items, use loyalty cards, and leverage grocery apps for rebates. The CFA’s tips—spotting downsized packaging, evaluating unit prices, and stocking up on good deals—offer concrete tools forer to navigate shrinking goods. The broader takeaway is a market that can self-correct if consumers vote with their wallets and demand higher value. The episode ends with optimism: better-quality, fairer products can emerge if public pressure aligns with corporate incentives.

Mentioned in This Episode

●Products

●Tools

●Companies

●Studies Cited

●People Referenced

Shrinkflation Quick Start: Do's and Don'ts

Practical takeaways from this episode

Do This

Compare prices in weekly supermarket flyers to identify value shifts.

Check the day-old rack for discounted or discontinued products.

Use the store's loyalty card to save on items you buy anyway.

Stock up on sale items when the price is exceptionally good.

Compare price per serving instead of just price per unit weight.

Use grocery apps to get rebates on items you buy regularly.

Avoid This

Don't assume a larger package size means better value if the total quantity has fallen.

Don't rely solely on sticker prices; check for long-term price trends and per-serving costs.

Common Questions

Shrinkflation is the practice of keeping prices the same while reducing the quantity of goods. It applies beyond food to various consumer products and is often rationalized as a response to rising costs, though its effects are felt by consumers through smaller packages at unchanged prices.