If you remember your favorite snack or breakfast cereal stretching further in years past, nostalgia probably isn't to blame. New analysis reveals that shrinkflation is costing American families.
InvestorsObserver monitored the prices and package sizes of popular brands from 2020 to 2026, including Frosted Flakes, Cheerios, Doritos, Coca-Cola, and M&M's.
It found that the average family of four is paying $741 more annually for the same products. Smaller packaging sizes were responsible for $41 of that price increase.
In some cases, prices soared by as much as 90%. A Reddit user posted a screenshot of InvestorsObserver analysis and bemoaned the state of snacking in r/inflation, writing, "Look how they massacred my M&M's."
A family bag of M&M's peanut milk chocolate candy exhibited the worst shrinkflation with a price hike of 90.2% and nearly a 6% size decrease.
"Now it is just an M," another Redditor quipped.
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Grocery prices have been steadily rising in recent years, so consumers are acutely aware of how a trip to the store can strain their budgets. To protect their wallets, they are shopping smarter, getting creative in the kitchen, and taking advantage of discount online retailers.
However, as senior analyst Sam Bourgi noted for InvestorsObserver, shrinkflation is insidious because it robs shoppers of the opportunity "to make informed purchasing decisions."
"No one is surprised by growing prices these days, but the issue with shrinkflation is the silence around it," Bourgi said. "You can clearly see when gas prices grow or rent rises — but in this case, you don't notice when you start to overpay for less. It lands hardest on those who can afford the least. …
"Shrinkflation is not only an economic thing, to some extent, but it also exploits consumer ethics."
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Other Reddit users shared that sentiment and sounded off.
"At least with inflation, you can still get the amount you think you're paying for," one vented.
"Yeah, sneakily reducing the size to make more profit is just deceiving consumers and should be illegal," another agreed.
"Do these companies not realize nobody actually needs these products?! At some point your prices are going to start turning away a lot of customers,'" someone else remarked.
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