International Journal For Multidisciplinary Research

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A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

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"To what extent has shrinkflation impacted consumer purchasing power and product value perception in the FMCG sector during recent inflationary periods?"

Author(s) Mr. Krishavraj Hitesh Gowani
Country India
Abstract Shrinkflation, derived from the terms “shrink” and “inflation”, refers to the practice whereby firms reduce the size or quantity of a product while maintaining its original price, thereby transferring rising production costs to consumers without overt price increases. While not a novel phenomenon, shrinkflation has gained heightened relevance amid recent global inflationary pressures. In the aftermath of the COVID-19 pandemic, supply chain disruptions, labour shortages, and escalating input costs have intensified its prevalence, particularly within the fast-moving consumer goods (FMCG) sector.
This study investigates the extent to which shrinkflation has influenced consumer purchasing power and perceptions of product value during recent inflationary periods. Anchored within the broader framework of inflationary economics, the research examines the underlying drivers of inflation and substantiates the analysis with statistical evidence and industry data on shrinkflation. The impacts on key economic agents, including consumers, producers, and policymakers are explored, with attention to both potential benefits and adverse consequences. Brand-specific case studies across diverse FMCG categories such as snacks, beverages, and hygiene products illustrate practical applications of shrinkflation strategies in contemporary markets.
The methodology integrates qualitative and quantitative approaches, including literature reviews, consumer surveys, economic modelling, and statistical visualizations through charts and infographics. Findings underscore the magnitude and global reach of shrinkflation, revealing its implications for consumer welfare, corporate strategy, and economic policy. The paper concludes by addressing ethical considerations, outlining policy responses, and proposing measures that may enable consumers, businesses, and governments to mitigate the impact of this phenomenon.
Keywords Shrinkflation, Inflation, Consumer Behavior, FMCG, Price Stability, Economic Agents, Skimpflation, CPI, Brand Strategy, Cost of Living Crisis
Field Sociology > Economics
Published In Volume 7, Issue 5, September-October 2025
Published On 2025-10-16
DOI https://doi.org/10.36948/ijfmr.2025.v07i05.58076

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