English Reference

Word

shrinkage

Phoneticsshrink·age, stress on the first syllable

US/ˈʃɹɪŋkɪdʒ/

UK/ʃɹˈɪŋkɪdʒ/

Countable & uncountable

Definition

n. the act of losing money or value, especially in a business or the stock market. It can also mean the physical act of something getting smaller.

n. the reduction in the value of an asset, such as a stock or real estate, or the physical reduction in size of a material. In a financial context, it refers to the loss of capital or market value.

Examples

“The company suffered a lot of shrinkage during the recession.”

“After the merger failed, the company experienced significant shrinkage in its market share and had to lay off several employees.”

“Economists warned that the sudden shrinkage of the housing market would lead to a long-term decline in consumer confidence and a slowdown in overall economic growth.”

Examples

simple

“The company suffered a lot of shrinkage during the recession.”

contextual

“After the merger failed, the company experienced significant shrinkage in its market share and had to lay off several employees.”

complex

“Economists warned that the sudden shrinkage of the housing market would lead to a long-term decline in consumer confidence and a slowdown in overall economic growth.”

Real-World Examples

“People who followed the MIND diet more closely showed slower brain shrinkage and less grey matter loss over time, with the strongest differences equivalent to about 2.5 years of delayed brain aging.”
ScienceDaily 1 Oct 2026
“The team found that the planet's rough surface may have obscured some of the tectonic structures used by scientists to calculate its shrinkage.”
Phys.org 13 Sept 2026

Etymology

From shrink + -age.

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

Word family

NOUN

shrinkage(C1)

ADJECTIVE

This entry

Exam level
CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
Frequency
Occasional
Level
C1 · Advanced
Updated

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English Reference