Shrinkflation: Definition and Requirements
On this page
Does your monitoring system detect drops in quantity?
Let's plan an exchangeDiscover our Price Monitoring SoftwareShrinkflation, or “réduflation” in French, involves reducing the quantity of a product (weight, volume, number of units) while maintaining or increasing its price. The listed price remains the same, but the price per kilogram or per liter increases. Since July 1, 2024, large grocery stores have been required to inform customers of this on the shelves.
The Essentials in 6 Questions
Less product for the same price: a hidden increase in the price per unit.
Manufacturers, retailers (including their private-label brands), pricing teams, and purchasing teams.
Whenever the format of a product sold in constant quantities changes.
Stores larger than 400 m² that primarily sell food, for the purpose of the posting requirement.
Absorb a cost increase without raising the list price.
Determine the price by comparing the price per unit of measurement, not the price of the package.
How Does Shrinkflation Work?
Shrinkflation shifts the price increase from the listed price to the price per unit of measure, which customers pay much less attention to.
Example: A 250-gram package sold for €2.50 costs €10 per kilogram.
The same product now weighs 225 g, still priced at €2.50. Its price per kilogram has risen to €11.11, an 11.1% increase that isn't reflected on the price tag.
The practice is not prohibited: the net quantity is still listed on the packaging. French regulations were intended to address the fact that this information was not clearly visible.
What the regulations require of retailers starting in 2024
The decree of April 16, 2024, which has been in effect since July 1, 2024, requires large grocery stores to post notices on the shelves indicating any reduction in quantity that results in a higher price per unit.
Who is affected: Retailers of consumer goods that operate a store larger than 400 m² that primarily sells food. Curbside pickup and online sales are not covered.
The following statement: “For this product, the quantity sold has increased from X to Y,” followed by the increase in the unit price, expressed as a percentage or in euros. This wording is mandatory; no other wording is permitted.
Where and for how long: on the packaging or on a label near the product, in the same font size as the unit price, for two months starting from the date the new size goes on sale.
The decree of June 28, 2024, extended the requirement to products sold in sets (pods, batteries, capsules) when the number of units decreases (decree of April 16, 2024, on Légifrance).
What Is Included, and What Is Not
The requirement applies to prepackaged products sold in fixed quantities, including both national brands and store brands.
Private-label brands are subject to the same requirements as national brands: a retailer that reduces the size of its own brand's packaging must clearly indicate this.
This does not include products sold in bulk, prepackaged items in variable quantities, or products sold individually.
A substantial change to a recipe that results in a new product also falls outside the scope, as does “cheapflation”—replacing an ingredient with a cheaper one without changing the quantity (National Consumer Institute, 2024).
Why Shrinkflation Skews Price Monitoring
A monitoring system that compares listed prices does not detect shrinkflation—neither among competitors nor in supplier pricing.
When a competitor reduces the size of a product without changing its price, its list price remains in line with yours. Its price per kilogram, however, has just gone up.
The opposite risk exists: if the new format is treated as a new product, the price history is cut off and the increase disappears from the comparisons.
Our belief: Price monitoring can only detect shrinkflation if it compares the price per unit of measure and if the product matching process links the new size to the old one. Without these two conditions,the price index calculated for the products in question is inaccurate.
The 3 Common Mistakes People Make When Dealing with Shrinkflation
Three blind spots keep cropping up, both on the retail side and the manufacturing side.
- Track only the list price: the increase remains hidden in competitors' price tables.
- Breaking with tradition: Treating the new format as an entirely new product offsets the increase in the unit price.
- Improvising the wording: The exact phrasing must be used word for word, including the percentage increase or the increase in euros, for two months.
For other rules regarding price display and advertising, see our guide to retail price compliance.
Frequently Asked Questions
Short answers to the most frequently asked questions about shrinkflation.
What is shrinkflation?
Shrinkflation involves reducing the quantity of a product (weight, volume, or number of units) while maintaining or increasing its price. The listed price remains the same, but the price per kilogram or per liter increases. A package that goes from 250 g to 225 g at the same price costs 11.1% more per kilogram.
What is the French translation of "shrinkflation"?
The French term is “réduflation,” a portmanteau of “réduction” and “inflation.” “Shrinkflation” comes from the English verb “to shrink.” Both terms refer to the same practice, and French regulations refer to “products whose quantity has decreased.”
Is shrinkflation legal?
Yes, reducing the quantity of a product is not prohibited as long as the net quantity is indicated on the packaging. However, as of July 1, 2024, grocery stores larger than 400 m² must display this information on the shelves. Failure to do so may result in an administrative fine of up to €15,000 for a legal entity.
Which stores are required to report shrinkflation?
Stores with a sales area of more than 400 m² that primarily sell food, operated by retailers of consumer goods. Mini-markets, curbside pickup, and online sales are not subject to this posting requirement.
What must the label state in the case of shrinkflation?
The required statement is: “For this product, the quantity sold has increased from X to Y,” followed by the increase in the unit price, expressed as a percentage or in euros. It must appear on the packaging or near the product, in the same font size as the unit price.
How long should the information remain posted?
Two months from the date the product goes on sale in its reduced quantity. After this period, only the price per unit of measure—which is always required—allows customers to compare prices.
Are private-label brands affected?
Yes. The requirement applies to both national brands and private labels. A retailer that reduces the size of a product under its own brand must post a notice to that effect in the affected stores.
How can you spot shrinkflation among your competitors?
By comparing prices per unit of measure rather than the listed prices, and by tracking the format history for each product. This requires a product-mapping system capable of linking a new format to the old SKU without interrupting the price history.
Key Takeaways
- Shrinkflation = less quantity, same price: the price per unit of measure increases.
- Effective July 1, 2024, this information must be displayed for two months in food stores larger than 400 m², including private-label products.
- Price monitoring can only identify it by comparing the unit price, using a product matching system that tracks changes in format.
Do you compare your competitors based on the listed price?
Price monitoring by the kilogram, based on reliable product matching, reveals what the list price hides.
Let's talk about your price monitoring →Discover our Price Monitoring SoftwareThese articles can interest you
Price compliance refers to the legal rules that a price and its display must follow.
In France, four rules apply: the reference price for discount advertisements, the prohibition on reselling at a loss, the EGalim promotional caps, and price disclosure requirements.
These rules are simple to state but difficult to apply to thousands of products and multiple channels. Most discrepancies stem from incomplete data at the time the price is set, not from any intention to mislead.
A comprehensive competitor pricing monitoring system is built on five inseparable components: data collection, product matching, alerts, reporting, and governance. If even one of these components is missing, the system becomes ineffective.
Data collection is no longer the weak link: according to Diamart Group (2026), 94% of French retailers collect competitive data, but about half still perform the matching manually.