Shrinkflation, a once trendy and satirical term, has now become a lasting staple in today’s marketplace and an accepted brand practice. With inflation likely not slowing down soon, consumer brands face a considerable challenge. They must balance profitability while maintaining transparency and consumer trust.
Here at PTIS Global, we specialize in helping brands tackle challenges like this head-on so you can uphold your integrity and keep your customers satisfied.
What is Shrinkflation?
Shrinkflation means to reduce the size or quantity of a product while maintaining its price.
This outcome often reshapes the perceived value of the consumer goods arena. The standard quart or half-gallon ice cream package, along with many other products is pretty much a thing of the past, now replaced by smaller versions of products we know well. While this approach helps brands handle rising costs, it oftentimes leaves consumers feeling deceived.
So, how exactly can brands address this?
A Transparent Strategy
In an effort to resist creating negative brand equity with their buyers, brands need to move beyond just getting by and focus on earning trust through transparency. We all know consumers value honesty, especially when it comes with added perks. Brands can keep their customers loyal while protecting their reputation if they are upfront about product size changes. Emphasizing benefits like portion control, ease of use and sustainability messaging further strengthens customer trust.
Strategies for Success:
- Clear and Honest Communication: Make sure your package sizes are clearly labeled and be upfront about why changes were made. This can make all the difference.
For example, you could highlight cost-saving advantages or sustainability initiatives. You’ll also want to work with retailers to ensure accurate shelf labels/signage and help communicate those updates effectively. - Focus on the Positives: Highlight benefits like portion control to put a positive spin on things. Smaller packages can also speak to the health-conscious trends we’re seeing
For instance, consumers are seeking out 100-calorie snack packs and single-serve options, not to mention extended shelf life. - Embrace Sustainability: Use smaller packaging to produce less material. This helps reduce food waste, which is a significant contributor to greenhouse gas production! This can provide consumer awareness and also show how these changes fit into your brand’s broader sustainability commitments.
A Global Perspective
Many think shrinkflation is just a U.S. phenomenon, but many countries have been using smaller packaging sizes for years. Looking to international markets can offer useful examples of how brands can downsize products while keeping consumer trust top of mind. With experience in these global markets, PTIS helps brands develop strategies that work across all regions and connect with customers no matter where their pin is tacked on the map.
Why PTIS?
Our PTIS formula shows that packaging is much more than just a way to protect products—it’s a key part of how customers perceive value, which is why we work with brands to:
- Conquer the challenges of shrinkflation without losing consumer trust along the way.
- Create packaging strategies that focus on value and sustainability.
- Keep up with the pace of evolving market trends and consumer needs.
Let’s Embrace the Future Together
Let’s be honest, shrinkflation isn’t going away, but it doesn’t have to be all doom and gloom. With a proactive and transparent approach, your brand can turn this challenge into a chance to build the trust and value consumers crave.
The good news? You don’t have to do it solo. Here at PTIS, our expertise helps you create packaging that not only meets current demands but also helps you stay ahead in navigating future needs.
Want to prepare your brand for what’s next? Work with us to make your packaging a lead driver of trust and sustainability.