All cotton will shrink to some extent, but quality sheet manufacturers anticipate this by cutting their items larger to allow for shrinkage.
When buying fitted sheets, look for extra-deep 15 to 17 inch pockets, which allows for the deep, pillow-top mattresses that are popular in the United States, and also ensures that the elastic will not be overstretched, leading to stress on the seams and fabric.
When it’s time to wash your sheets do so in warm water, dry them on a low setting, and remove them from the dryer promptly while they are still slightly damp, then hang or fold to smooth.