CONSUMER RESPONSES TO SHRINKFLATION IN THE FMCG SECTOR: A SYSTEMATIC LITERATURE REVIEW

Abstract

Purpose: Shrinkflation, defined as the stealth reduction in product volume at a constant or increased price, has become a common price adjustment strategy for companies to combat inflation in the fast-moving consumer goods (FMCG) market, but the evidence of its impact on consumers is scattered by methods, contexts and constructs. This study provides a systematic review of the empirical and conceptual works on the consumer responses to shrinkflation and package downsizing, putting special emphasis on perceived value, ethics, brand trust and brand switching.
Design/methodology/approach: The Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA 2020) guidelines were chosen to conduct a systematic review. Peer-reviewed and reputable studies were selected based on the use of major databases, followed by screening of studies based on pre-defined eligibility criteria and then the results were synthesized narratively and thematically. A total of 23 studies were found from 2004 to 2025 that met the inclusion criteria and were charted on context, method, focal constructs and findings.
Findings: The synthesis resulted in six themes: awareness and detection of shrinkflation, perceived value and price (un)fairness, ethical assessment of shrinkflating, loss of brand trust, consequences of brand loyalty and brand switching, and transparency and communication as a remedy. Even though some of the studies focus on some of these other areas, the findings regarding covert downsizing are consistently reported as unfair and deceptive, a decrease in perceived value, a decrease in trust, an increase in switching intention, and how disclosed downsizing and transparency can counteract these effects. Cross-sectional surveys are used extensively in the literature and there is limited use of trust as a mediation mechanism and detection capability as a construct.
Originality/value: The review brings together a disjointed space, uses an experience map of the methods and gaps, and recommends an agenda that is integrative and focuses on brand trust as the primary driver that relates shrinkflation perception to switching behaviour for emerging markets like India.