New Yorkers went feral when the city’s first-ever free grocery store opened earlier this year–and honestly, who can blame them? Grocery prices are already sky-high in New York, and they’re only getting worse.
So if you’ve been side-eyeing that $14 carton of eggs, you’re definitely not alone.
A new analysis from InvestorsObserver reveals that while many of America’s most recognizable grocery staples–like Frosted Flakes, Doritos, Coca-Cola, Campbell’s soup, and M&M’s–may look the same on shelves, they’re quietly costing you a lot more.
Americans are spending $741 more a year on the same groceries
After analyzing prices and package sizes from 2020 through 2026, researchers found that the average family of four is now spending an extra $741 per year on the exact same grocery items.
And here’s the kicker: you’re not even getting more for that money–in many cases, you’re actually getting less.
Take Kellogg’s Frosted Flakes–today, it costs 51% more per serving than it did in 2020, even though the box contains fewer servings overall.
Prices are rising while packages are shrinking
This strategy, known as “shrinkflation,” is showing up across multiple major brands.
Instead of raising prices all at once, companies often increase the price first–then quietly shrink the package size later, hoping shoppers won’t notice.
And it’s not just cereal.
Doritos, Cheerios, and M&M’s have all followed the same pattern. Coca-Cola even faced backlash after U.S. senators accused the company of overcharging for its 7.5-ounce mini cans, which cost significantly more per ounce than larger bottles.
Doritos offers a clear example:
- A 15.5-ounce bag cost $4.79 in 2021
- It jumped to $5.99 in 2022
- By 2023, the price stayed the same–but the bag shrank
- Today, a 14.4-ounce bag costs $6.69
So not only are you paying nearly $2 more–you’re also getting less product.
Why shrinkflation hits hardest for some households
According to InvestorsObserver analyst Sam Bourgi, the biggest issue with shrinkflation is how easy it is to miss. Bourgi stated:
No one is surprised by growing prices these days, but the issue with shrinkflation is the silence around it. 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.
For low-income households, where every dollar and every ounce matters, these subtle changes can add up fast.
Some brands are finally slowing price hikes–but don’t get too excited
There is a slight shift in 2026: for the first time in years, many major brands paused price increases.
Out of 16 brands studied, nine held prices steady between 2025 and 2026.
But that doesn’t mean things are getting cheaper. Prices are still significantly higher than they were in 2020–some by as much as 30%–and smaller package sizes haven’t bounced back.
Meanwhile, a few brands are still pushing prices even higher.
- M&M’s, already one of the biggest offenders, increased another 6.7%
- Reese’s jumped 15% in 2026 alone, crossing $10 per bag
Brands that didn’t shrink their products
Not every company leaned into shrinkflation.
Brands like Ben & Jerry’s, Breyer’s, and Häagen-Dazs did raise prices over the past six years–but their increases (between roughly 10% and 17%) more closely tracked inflation, and importantly, their package sizes stayed the same.
According to Bourgi, that distinction matters.
It proves the shrinkflation strategy was a choice, not a necessity. If rising costs forced brands to shrink packages, every brand would have done it…Which means the ones that didn’t make a deliberate decision to give consumers less without telling them.
Shrinkflation is designed so you don’t notice it
Unlike a price hike, which is obvious, a slightly smaller package is much harder to catch–and that’s exactly the point.
Research shows shoppers are far more sensitive to price changes than to size reductions–a behavioral gap many brands are now exploiting.
Awareness also varies by generation:
- Baby boomers: 70% notice shrinkflation
- Millennials: 54%
- Gen Z: 48% (though 80% say they’ve stopped buying products because of it)
The bottom line
Even if prices look like they’ve stabilized, your grocery bill tells a different story.
Between higher prices and smaller packages, Americans are quietly paying hundreds more each year–often without realizing it. See the full report.
Want a bit of help with your grocery bill? This is the cheapest NYC supermarket for New Yorkers to get groceries right now.
