shrinkage Syllabification: (shrink·age)Pronunciation: /ˈSHriNGkij/Translate shrinkage | into German | into Italian | into Spanish Definition of shrinkage noun the process, fact, or amount of shrinking:give long curtains good hems to allow for shrinkage an allowance made for reduction in the earnings of a business due to wastage or theft. shrinkage in other Oxford dictionaries Definition of shrinkage in the British & World English dictionary