SaaS shrinkflation

Almost a third of SaaS contracts have been impacted by “SaaS shrinkflation” in the past year.

By the end of September 2025, 30% of all contracts we renewed for our customers across the globe had been affected by “SaaS shrinkflation” – a practice in which vendors charge the same price or more for reduced functionality.

Worryingly, SaaS shrinkflation is not only becoming harder to detect, but it is on the rise, having increased by 20.5% since 2024. Vendors often use opaque tactics such as product bundling, unbundling, and currency harmonization to mask feature reductions.

It’s also particularly common in enterprise-level plans, where customized pricing makes reductions easier to conceal. Typical examples include fewer licenses, admin users, or contacts.