The difference between a business choosing to raise prices as a result of higher input costs (inflation) versus degrading the standard/scale of the product (shrinkflation) is whether the buyers are willing and able to pay more. If they are not then they get shrinkflation.
I see a lot of shrinkflation at the moment and that indicates a weak economy with incomes stretched to their limits.
It is much most expensive to downsize a product (packaging, logistics, wholesale deal sizing, etc) than just I clearing the ticket price. It’s done only when inflation isn’t an option.