A lot has been written recently about brands and shrinkflation. And well, it’s not good. Shrinkflation is simply the act of downsizing your product’s package while keeping the price the same (or worse, raising it). On paper, it might seem like a win. There are seemingly valid reasons like rising costs or supply chain issues to support the decision, and after all, this solve will protect margins… and even better—consumers might not notice. As a brand strategist from my past used to say, “Your consumer isn’t stupid, they’re just busy.” And in this case, they’re not THAT busy. They’ll notice.
Even Cookie Monster has weighed in. He recently tweeted:
Cookie Monster @MeCookieMonster
Me hate shrinkflation! Me cookies are getting smaller. 😔
A handful of big consumer brands were recently called out on the TODAY show for doing just this—insert YIKES emoji here. Once a consumer realizes they’ve been duped, their relationship with the brand starts to change… and not for the better. According to a 2024 Capital One study, nearly half of consumers will abandon a brand over shrinkflation.
Shrinkflation just makes consumers like your brand less. Simple statement, that could wind up killing your brand. It asks consumers to pay more for less. Maybe it’s just an ounce or a slice less, but from a relationship standpoint, it sends a clear message—Dear consumer, we care more about us than we care about you. Trust begins to erode and in brands (and life), trust is perhaps the single hardest thing to win back.
Grocery Shopping Meets Used Car Buying
Car shopping has long carried a negative stigma. Even if it’s improved over the years, there’s still that voice in the back of your mind—”Hmm..where are they trying to get me?” Maybe there were hidden fees, or the warranty wasn’t as good as it sounded. It’s that uneasy vibe that puts people constantly on guard, waiting for the catch. Unfortunately, that’s the same feeling consumers get when they grab a product on the shelf that’s hiding something. Disguising its motives. But alas, consumers aren’t so busy that they’ll just breeze through the aisle. Instead they stand there… reading the fine print, doing some quick price-per-ounce math.
When they realize they’re getting less, that nagging car-buying voice creeps in—chipping away at loyalty. And even if the change goes unnoticed in the aisle, once a family notices their favorite product doesn’t last as long, or there’s simply less of it, they start asking questions, “Why am I still buying this?”
They may continue to buy for a limited time, but they’re not happy about it. They’ll buy simply because the kids like it or because they’ve always bought it, but that’s not loyalty—that’s habit. And habits change fast when better options come along. With endless consumer choices, there’s no reason to stick around.
Solution: Consider the Value Exchange
So, what’s the alternative? It’s simple: a brand + consumer value exchange. Instead of trying to squeeze more out of each transaction, give consumers something that makes them feelvalued. Give more instead of less.
To build a strong long-term relationship with consumers it’s about more than just selling a product—it’s about creating moments where they experience positive feelings about choosing your brand. Think for a second about the “gift with purchase” model. It’s not just a freebie; it’s a meaningful exchange. It says, “Hey, thanks for your loyalty. Here’s something extra.” That small gesture can turn a routine purchase into a feel-good moment. And when consumers feel good about your brand, they’re far more likely to stay with you. Pretty simple.
Elevating Engagement Across the Portfolio
Let’s elevate this concept further. This idea of a value exchange doesn’t just apply to one product—it can drive portfolio growth. Whether you’re a branded house or a house of brands, the key is to create a two-way street between consumers and your portfolio, building trust across the board. When consumers trust one product, they’re more open to trying others in your lineup.
The value exchange can come in many forms—whether it’s a bonus product, a sample of something new (perhaps from your portfolio), or an incentive to explore more that your brand’s portfolio has to offer. Even consumer research can be part of the value exchange. You’re creating a relationship based on trust and engagement, not just transaction. And that’s a recipe for sustained long-term growth.
From Short-Term Fixes to Long-Term Wins
Adjusting the corporate vision from short to long is easier said than done, especially if your brand lives in a portfolio of giants, but at the end of the day, consumers don’t want to feel duped—they want to feel valued.
Instead of playing the shrinkflation game, focus on sparking a positive connection with your consumers. Create moments where they feel like they’re getting something more, something that makes them appreciate your brand. Consumers want to feel good about choosing your product, knowing they’re not just buying on habit—they’re making a conscious choice to stay loyal. Instead of forcing them to stop and complete back-of-the-napkin math, raise the bar, and give them a thing of value. That “thing” can bring value to your brand too.
Building a brand that consumers truly love isn’t about short-term gains; it’s about creating long-term relationships that last. If it helps, think of it simply as a way to gain a distinct advantage over your shrinkflation-focused competition.
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Rick Thornhill is President at Insight Pack. He’s led integrated teams at some of the world’s best agencies and has partnered with some of the world’s biggest brands. He’s passionate about connecting people and products in new innovative ways that provide a genuine value exchange between the brand and consumer.