Consumer Response to Shrinkflation : Evidence from the FMCG Market in Delhi-NCR
Authors
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Deepika Goel
Professor of Economics (Corresponding Author), Department of Economics, Aryabhatta College, University of Delhi, Benito Juarez Road, New Delhi - 110 021
https://orcid.org/0000-0003-1823-2160
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Apoorva Gupta
Assistant Professor, Department of Economics, Hansraj College, University of Delhi, Mahatma Hansraj Marg, Malka Ganj, Delhi - 110 007
https://orcid.org/0009-0003-8224-9781
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Neha Verma
Associate Professor, Department of Economics, Kirori Mal College, University of Delhi, North Campus, Delhi - 110
https://orcid.org/0000-0003-3522-244X
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Manoj Sinha
Principal, Professor of Political Science, Aryabhatta College, University of Delhi, Benito Juarez Road, New Delhi - 110 021
https://orcid.org/0000-0002-9945-2394
DOI:
https://doi.org/10.17010/ijom/2026/v56/i10/176110Keywords:
shrinkflation, India, FMCG market, brand value.Publishing Chronology: Paper Submission Date : November 5, 2025 ; Paper sent back for Revision : June 15, 2026 ; Paper Acceptance Date : July 30, 2026 ; Paper Published Online : October 15, 2026.
Abstract
Purpose : The study examined the determinants of noticing shrinkflation and their association with consumer purchasing behavior and perceptions across five fast-moving consumer goods (FMCG) product categories: food, personal care, cleaning products, stationery, and alcohol. For this study, survey data from Delhi-NCR were collected, and logit models were estimated.
Design/Methodology/Approach : Data were collected through a structured questionnaire across Delhi and the National Capital Region of India, from January 2025 to April 2025. Logit regressions identified factors associated with consumers’ noticing shrinkflation.
Findings : Consumers noticed shrinkflation, particularly in food and beverages. Awareness was higher among women, urban residents, frequent shoppers, and consumers who checked unit prices, but lower among middle- and high-income households. Awareness about shrinkflation was associated with higher product switching and the perception of higher effective taxation. Quality reductions affected consumption more than quantity reductions, a statistically significant difference for food and cleaning products. Buying branded products is consistently associated with a lower probability of noticing shrinkflation for all product categories except cleaning products. Quantity reductions were associated with significantly higher monthly expenditure for personal care and cleaning products.
Practical Implications : Voluntary disclosures of packaging and pricing changes could let firms manage costs while maintaining consumer trust. Regulatory monitoring of essential FMCG products that consumers kept buying despite higher effective prices could protect consumer welfare.
Originality/Value : The study contributed to the scanty literature on shrinkflation by conducting a primary Delhi-NCR (India) survey spanning different age groups and income strata. The study used logit regressions to estimate the determinants of noticing shrinkflation and its association with various parameters, such as brand value of the product, consumption, and average monthly expenditure of households.
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