Shrinkflation: The Silent Squeeze on Shoppers Incl. Magnum Lovers

Shrinkflation is becoming harder to ignore, with everyday shoppers noticing they are getting less for the same price.

What Is Shrinkflation?

The term refers to when companies reduce the size, quantity, or weight of a product while keeping prices steady, effectively passing rising production costs onto consumers without visibly increasing shelf prices. It’s a subtle form of inflation, one that doesn’t always grab headlines but has a very real impact on household budgets over time.

The Magnum Example

One example playing out right now is with Magnum ice creams, where the once six-pack of mini Magnums has quietly been reduced to five. On the surface, the packaging and branding remain the same, but consumers are now receiving fewer ice creams for the same money. 

Source: News24 by Lesley Wright

Why Companies Do It

This kind of change can be frustrating, as many people only notice it after purchase, realising they’re getting less enjoyment for the same spend. It highlights how shrinkflation has become a strategy for companies to manage costs in a high-inflation environment, something you wouldn’t really notice until the last moment.

Unilever explains, “Due to rising costs and in an effort to stay competitive, we’ve updated our packaging from six ice creams of 60ml each to five ice creams of 55ml each. This change allows us to maintain the integrity of our product without a significant price increase.”

A Spin-Off on the Horizon

What makes this case particularly interesting is that Magnum falls under Unilever’s ice cream division, which the company is expected to spin off into “The Magnum Ice Cream Company” in mid-November.

The division includes well-known brands such as Magnum, and the move reflects Unilever’s plan to streamline operations and focus on Beauty & Wellbeing and Personal Care categories. However, it also raises questions about how brands under the new structure will handle pricing and product sizing, especially as they navigate global inflationary pressures. 

For the first half of 2025, Unilever reported 5.9% growth in its ice cream division, with volumes increasing 3.8% and pricing contributing 2.0%. The company added that it continues “to enhance the fundamentals of the business, with improved execution and impactful innovations.”

Consumer Concerns

For consumers, the spin-off could mean further uncertainty while they remain committed to the product. While it may unlock shareholder value and allow the ice cream division to operate independently, shoppers may worry that the new standalone company will lean even more heavily on shrinkflation to protect margins. One consumer expressed their frustration, stating, “From now on mini Magnums are off my shopping list, as well as all other Unilever products.”

This concern isn’t unfounded, given that food and consumer goods companies worldwide have often resorted to reducing pack sizes rather than raising prices outright. 

Conclusion

Shrinkflation serves as a reminder that inflation doesn’t always show up in price tags alone. Whether it’s fewer Magnums in a box or smaller chocolate bars, the effect is the same: consumers pay more in real terms while companies quietly protect their bottom line. 

With Unilever’s restructuring on the horizon, how brands like Magnum balance affordability with profitability will be a telling test of whether shrinkflation remains a temporary tactic or becomes the new normal. For everyday shoppers, one way to offset the sting of spending could be by investing in the very companies behind these products, turning unavoidable consumer costs into potential long-term returns.

Sources – EasyEquities.

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