Have you noticed how most products you buy have shrunk in size?

Infograph: TBS

Abul Jashim, a rickshaw puller, parks his rickshaw near the Moghbazar intersection after completing a trip. It's 12.30pm. He won't have lunch for another one and a half hours. So, he decides to have some snacks to curb his growing hunger. 

He walks over to the nearby makeshift "Singara-Puri Shop" but is taken aback by what he sees: the size of the Singara has noticeably shrunk. In the past, four Singara used to satisfy his hunger and cost Tk3 each. 

However, now, even though the price has remained the same, the Singara has become so small that he needs at least six or seven of them to fill himself up. The state of his pocket won't allow him to afford so many, thus he settles for just five. 

After placing his order, Abul turns to the shopkeeper, Md Al-Amin, and asks, "What's going on, bhai? Are the Singara getting smaller every day?"

Al-Amin doesn't mind fielding such a question and responds in a rather light-hearted manner, "What can I say? The kitchen market is on fire. You should be grateful we are still keeping the price as before!" 

Al-Amin's strategy for keeping the price unchanged is quite interesting. He explains that just six months ago, he produced 20-25 mini Singara using 1 kg of potatoes and 1 kg of flour. However, with the same quantity of ingredients today, he is making around 30-35 Singara to maximise profit.

"From gas cylinders and oil to potatoes and onions – prices of everything are on the rise. Even the papers for packaging are now Tk 70 per kg," rues Al-Amin, before adding, "but we don't want to increase the price of our product, because that would result in a significant decline in our sales. Who would want to buy a mini Singara for Tk5?" 

And it looks like this is the same story everywhere, affecting both packaged and unpackaged food items, spanning both branded and non-branded products.

Take the Bombay Sweets Ring Chips for example. Initially, a 25g packet was priced at Tk10. Over time, the size gradually came down to 22g, and now it is down to just 15g, all the while the price has remained constant. Similarly, the mini sachet of Pran Tomato Sauce, which used to cost Tk3, contained 10g in the past. However, it has now shrunk to 8g without any change in its price. The mini pack of Dano Milk Powder, which was once Tk10 for 18g, has now become 10g. The Ruchi BBQ Chanachur, which was once Tk10 for 35g, has now become 25g. And Mr Cookie Butter Coconut Biscuit, which was once Tk10 for 55g, has now become 39g. 

Just stroll through any corridor of a supershop, and you will easily notice that almost all the products of big brands have become smaller by at least 20% to 30%, while keeping their price the same. 

Even the longevity of stationary products is now also a cause for concern. According to Nahian Hridita, who recently sat for the HSC exam, none of the pens she used for writing lasted the entirety of an exam day. "I felt like the pens were running out faster than before. Maybe there wasn't as much ink as it used to have before," she shares. 

Many restaurants are also reducing the size of their platters instead of increasing the food price. 

"Our primary customers are college and university students who don't have a steady income. If we keep increasing the prices of our dishes due to rising costs, they may no longer be able to afford dining at our restaurant," says the manager of a restaurant in Khilgaon on condition of anonymity. 

"Additionally, for many customers, dining out isn't solely about the food; it's about spending quality time together, especially since there are limited places for socialising in the city. So, they don't necessarily mind if the quantity of food is reduced," he adds.

Raising the price without raising the price

Such a practice of reducing the size of a product, while keeping its original price intact is known as Shrinkflation. This is considered a cunning way of raising the price, because even though it looks like the price of the product is not rising, the general price level of goods per unit of weight or volume is actually rising.

Dr Nasrin Akter, a professor of Marketing at Dhaka University, explains that Shrinkflation is one kind of marketing strategy which attempts to strike a balance between a customer's affordability and a company's profit margin, amidst the worldwide increase in inflation. 

"No company wants to reduce its product size drastically. They keep decreasing their product size slowly but steadily, so that it doesn't catch people's attention," says Akter. 

It's worth noting that sometimes companies also reformulate their products using cheaper ingredients to reduce their manufacturing costs, a tactic some refer to as Skimpflation. 

Kamruzzaman Kamal, the marketing director at Pran-RFL Group, describes that during times of inflation, the purchasing power of the general population naturally diminishes, leading to a decrease in sales. In such situations, the strategy of Shrinkflation can be convenient for many price-sensitive customers. 

"If the price of goods increases, then ultimately the price of the product has to increase. However, this approach is implemented selectively for certain products. A great deal depends on factors like the product's packaging. Basically this trend started after the pandemic when the country faced a raw material shortage, causing prices to surge significantly," elaborates Kamal. 

The victims of Shrinkflation

As always, it's the middle-class that bears the brunt of such practices. Kashfia Kamal Metheela, a teacher at South Breeze School, shares her experience, emphasising that she feels the impact of Shrinkflation most prominently in packaged, powdered products like spices and milk. She recalls that in the past, a packet turmeric powder would last her family for an entire month. Nowadays, however, it barely makes it halfway through the month.

"We Bangladeshis have a penchant for flavourful cuisine, and we tend to use a generous amount of spices in our dishes," she says. "So, Shrinkflation is compounding the effects of inflation on us. We are being compelled to spend twice as much money as before on these products, even though our income remains unchanged."

Dalim Ahmed, an employee at a private company living in Lalbagh with a monthly salary of Tk50,000, shares his perspective. He mentions that just two years ago, he could easily purchase all the packaged and bottled grocery items, including toothpaste, soaps, shampoos, spices, noodles, and malt drinks, on a budget of Tk7,000. However, due to Shrinkflation, he now finds himself having to ration the usage of specific products.

"While my house rent, my daughters' school fees, and the cost of daily essentials have increased, my monthly salary has more or less remained the same. I have no choice but to cut down on other expenses. So, I've advised my wife and daughters to be more economical in their use of items like soaps, toothpaste, health drinks and noodles, because the quantity of these products per unit has decreased," Dalim reasons. 

It goes without saying that such a practice could have a detrimental impact on the health and hygiene of many individuals. Dr Khaleda Islam, a professor and the director of the Institute of Nutrition and Food Science, asserts, "this is particularly concerning as the nutritional requirements of the elderly, as well as children and women in the household, are likely to be significantly compromised." 

Pierre Chandon, a professor of Marketing at Sorbonne University's INSEAD behavioural lab, suggests that Shrinkflation could disproportionately affect people with a low level of literacy and numeracy. Such individuals are more likely to overlook the reduction in quantity (often mentioned only on the packaging) than a price increase, which is more noticeable because it involves handing in more cash. 

"More generally, people, even highly educated ones, fail to realise that in terms of price per kg, a given percentage quantity reduction is equivalent to a larger percentage price increase. For example, a 50% reduction in quantity for the same price means that the price per unit has doubled, which is equivalent to a 100% increase in price. To get the intuition, one can see that a 100% decrease in quantity is worse than a 100% increase in price, because a 100% reduction in quantity means nothing left," he explains. 

A form of deception 

This raises the question of whether Shrinkflation can be seen as a form of deception of customers, particularly those who may not immediately notice the reduction in quantity and continue to purchase a product with the assumption that they are receiving the same amount for a fixed price as before.

Shaiful Hossain, economics analyst, finance and business strategist as well as the CEO of Finpower Leadership International, is also of the same opinion. He says, "businessmen adopt the policy of Shrinkflation to adjust their cost. But it can also be termed as deceiving the customers. While businessmen continue to make the same profits, it's the customers who get less." 

Nonetheless, Hossain also believes that there is a silver lining to Shrinkflation, as it encourages people to become accustomed to consuming less, which has a positive impact on health and sustainability.

That said, is there any way out for the customers if they feel cheated or scammed due to the practice of Shrinkflation? Not likely. According to AHM Shafikuzzaman, the Director General of the Directorate of National Consumer Rights Protection (DNCRP), while Shrinkflation may be considered unethical, it doesn't technically constitute cheating customers.

"It cannot be considered cheating because merchants are not selling a product that claims to weigh 100g but only contains 80g. The reduction in quantity is disclosed in advance," Shafikuzzaman explains. 

"However, of course any customer can file a complaint with us if they feel like their rights are being violated. In such cases, we can summon the concerned companies for a hearing. However, it's important to understand that there is no mechanism to compel or legally hold them accountable," he adds. 

Hence, the onus is on the customers to be more careful, opines Consumers Association of Bangladesh (CAB) President Ghulam Rahman. "I consider it (Shrinkflation) to be a form of deception aimed at consumers. However, as long as companies are disclosing the quantity of the product on the packaging, there is no concrete basis to accuse them. Therefore, I believe it is crucial for customers to become more cautious."

Meanwhile, Dr Mohammad Naveed Ahmed, Managing Director of Miyako Appliance Limited, Bangladesh and the first Doctor of Business Administration from IBA, University of Dhaka, has an alternate solution in mind. 

"We, as consumers, tend to pay close attention to specific units of measurement, such as 500g, 1 kg, 1.5 kg, or 0.5 litres, 1 litre, 1.5 litres," he states. 

"However, we often overlook subtle changes, like 230g becoming 200g or 330ml turning into 280ml. To address this issue, it might be beneficial to establish some guidelines. For instance, small-sized bottled drinks could be standardised at 200 ml, while medium-sized options should be consistently offered at 500 ml. This approach could foster fair competition and mitigate the ethical concerns surrounding Shrinkflation."