Issue Shrinkflation trades short-term margin for credibility and regulatory exposure

Summary

This issue weighs the short-term gains of shrinkflation against its longer-term costs. Capgemini accepts that quietly reducing pack sizes can lift margins for a while. It argues, however, that the lack of transparency can rapidly damage a brand's credibility and the loyalty of its customers. Shoppers often expose such practices on social media, which magnifies both reputational and commercial risk. The report also warns that the tactic may attract regulatory consequences, making it a poor trade for brands that depend on trust.