CPG Brands Are Ripping You Off: Here’s How!
Ever get the feeling you’re paying the same amount at the grocery store but bringing home less food? You’re not just imagining it. This is happening with many CPG brands today.
It’s a sneaky tactic many Consumer Packaged Goods (CPG) brands use to protect their profits, and it’s costing you money. Think about the products you buy every week, like cereal or peanut butter. If the price suddenly jumped, you’d notice immediately. So, instead of being upfront, some companies quietly give you less product for the same price.
As a certified sports nutritionist and strength coach, I’ve spent my career helping people understand what they’re putting in their bodies. Now, I want to show you what’s being taken out of the packages before you even buy them. This guide will expose the common tricks CPG brands use and give you the strategies to become a smarter, more empowered shopper.
Disclaimer: This article is for informational purposes only and is not meant to treat or diagnose any condition. It is recommended that you speak with your doctor before starting any exercise program, changing your daily nutrition, or adding any supplements to your regimen.
Table of contents
Key Takeaways
- “Shrinkflation” is Real: CPG brands often reduce product size or quantity while keeping the price the same, a practice that has noticeably increased since 2022.
- “Skimpflation” Affects Quality: Another tactic is “skimpflation,” where companies use cheaper or fewer high-quality ingredients to cut costs, which can alter the taste and nutritional value of your favorite products.
- Unit Pricing is Your Best Tool: The most effective way to spot these tricks is to ignore the sticker price and focus on the unit price (e.g., price per ounce or per 100 sheets) to see the true cost.
- Store Brands Offer Value: Many store brands, like Costco’s Kirkland Signature or Walmart’s Great Value, are often produced by the same manufacturers as name brands and offer comparable quality for a lower price.
What Are CPG Brands?
CPG brands, or Consumer Packaged Goods, are the companies behind the products you buy and use every day. These are items that require routine replacement, like food, drinks, toiletries, and cleaning supplies. They are designed for high turnover and are sold in virtually every retail environment, from massive grocery stores to online platforms.
The CPG industry is dominated by a few massive corporations. Companies like Procter & Gamble (P&G), Nestlé, and Unilever own hundreds of individual brands, creating an illusion of endless choice on store shelves. While you might be choosing between Tide, Gain, or Downy, your money often ends up in the same place.
These brands rely on mass marketing and developing strong brand loyalty. They spend billions on advertising to ensure you associate their names with consistent quality, making you more likely to grab their product without a second thought.
Here are some of the key players and the familiar products they control:
- Procter & Gamble (P&G): The company behind Tide detergent, Pampers diapers, and Gillette razors.
- Unilever: Owns brands like Dove soap, Lipton tea, and Ben & Jerry’s ice cream.
- Nestlé: Offers products like Nescafé coffee, KitKat chocolate bars, and Purina pet food.
- PepsiCo: Not just Pepsi, but also Lay’s chips, Quaker Oats, and Doritos.
- The Coca-Cola Company: Manages a huge portfolio of beverages, including Coca-Cola, Sprite, and Minute Maid.
These CPG brands are a massive part of the retail economy and have a direct impact on your daily life and budget.
How CPG Brands Are Ripping You Off
CPG brands use several clever, and perfectly legal, methods to increase their profits without raising the sticker price. These tactics rely on the fact that most shoppers are more sensitive to a price hike than a subtle change in size or quality. Here are the main ways you’re getting less for your money.
Shrinkflation: Getting Less for the Same Price with CPG Brands
This is the most common trick in the book, and it has become widespread. “Shrinkflation” is when a company reduces the size or quantity of a product while the price stays the same. According to an October 2024 analysis by LendingTree, about one-third of common consumer products have shrunk since the pandemic.
The changes are often subtle, designed to go unnoticed.
- Cereal: The original article was right about this one. Your favorite box of cereal may look identical from the front, but companies make it thinner. For instance, General Mills reduced its “family size” boxes from 19.3 ounces to 18.1 ounces, which is one less serving per box.
- Peanut Butter: As noted, those peanut butter jars now have a large dimple in the bottom. This small design change removes an ounce or two of product from the jar without you realizing it.
- Paper Products: This category has seen some of the biggest changes. According to the Bureau of Labor Statistics, household paper products saw a 10.3% price increase due to shrinkflation between 2019 and late 2023. A roll of toilet paper might go from 264 sheets to 244, while a roll of paper towels shrinks from 133 sheets to 121.
- Snacks: Chip bags are notorious for “slack fill,” the empty space that protects the chips. But that space has been growing. A “party size” bag of Tostitos quietly dropped from 17.5 ounces to 15 ounces.
Skimpflation: CPG Brands Secretly Changing the Recipe
Even more deceptive is “skimpflation,” a term for when companies reduce the quality of a product by using cheaper ingredients. This cuts their costs but leaves you with an inferior product. This practice is harder to spot because the package size might not change at all.
A Consumer NZ survey in 2025 found that 72% of shoppers had noticed shrinkflation, but many are unaware of skimpflation. Examples include:
- Using Cheaper Ingredients: Some ice cream brands have reduced the amount of milkfat below the legal 10% threshold required to be called “ice cream.” Now, they must label their product a “frozen dairy dessert.”
- Reducing Key Components: A brand of guacamole might reduce its avocado content from 80% to 77%, or a chicken enchilada’s chicken content might drop from 27% to 20%.
- Watering Down Products: Some consumers report that products like laundry detergent or shampoo seem more watered down than before, requiring them to use more product to get the same result.
I find these types of practices dishonest. Rather than being upfront about rising costs, companies are being deceptive, hoping you won’t notice these subtle downgrades. After all, most people don’t check the net weight or ingredient list every time they shop.
What Can You Do To Not Get Ripped Off?
You can fight back against these deceptive practices by becoming a more mindful and strategic shopper. In my experience as a coach, the key to success is focusing on the numbers that matter. Here are the most effective strategies.
Become an Expert on Unit Pricing
This is the single most powerful tool you have. The unit price tells you the cost per ounce, per pound, or per 100 sheets. This figure is usually in smaller print on the shelf tag. By comparing the unit price, you can instantly see which package is the better value, regardless of its size or brand.
More than a dozen U.S. states now require unit pricing to be displayed, making it easier for consumers to spot hidden price hikes. If your store doesn’t display it clearly, you can use a calculator app on your phone, like Unit Price Calculator or Price Compare Calculation.
Give Store Brands a Serious Try
Many people shy away from store brands, assuming they are lower quality. However, that’s often not the case. Many major manufacturers, like Reynolds and McCormick, also produce store-brand products for retailers. You get a similar quality product without paying for the national advertising budget.
A study from Consumer Reports found that 76% of store-brand products tasted just as good as their name-brand counterparts. In blind taste tests, they found store brands from Costco (Kirkland Signature), Target (Market Pantry), and Walmart (Great Value) were often as good or even better.
Use Technology to Your Advantage
Don’t just rely on in-store prices. Several apps and browser extensions can help you ensure you’re getting the best deal.
- Flyer Apps: Apps like Flipp digitize all the weekly grocery flyers, allowing you to search for deals on specific items and see which local store has the best price.
- Price Comparison Apps: The Amazon app lets you scan a barcode in-store to see if the online price is cheaper. Other apps, like Price.com, let you compare prices across multiple major retailers.
- Loyalty Programs: Joining a store’s loyalty program is almost always worth it. You get access to exclusive digital coupons and sale prices that non-members don’t receive.
By being a savvy and informed shopper, you can minimize the impact of these sneaky CPG brand tactics and make sure your dollar goes further.
FAQs About CPG Brands
Is shrinkflation legal?
Yes, shrinkflation is generally legal in the United States. As long as the company accurately prints the net weight or volume on the label, they are not required to announce that the package size has changed. This is why it’s so important for consumers to read the labels carefully.
Which products are most affected by shrinkflation?
While it can happen in any category, some are hit harder than others. According to a 2024 LendingTree analysis and other reports, the most affected categories are household paper products (toilet paper, paper towels), snacks (chips, crackers), cereal, and candy.
How can I tell if a product’s quality has dropped?
Spotting skimpflation is tougher. The best way is to check the ingredients list. Ingredients are listed by weight, so if a premium ingredient like “real cheese” moves further down the list and is replaced by “cheese flavor,” the quality has likely been reduced. Sometimes, you may only notice a difference in taste or texture after you buy the product.
Is there anything being done to stop these practices?
Consumer awareness is growing, and some lawmakers are taking notice. In 2024, a bill was introduced in the U.S. Senate that would empower the Federal Trade Commission (FTC) to treat shrinkflation as a deceptive practice. Additionally, some grocery chains like Carrefour in France have started putting warning labels on products that have been downsized.
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