Are shoppers’ concerns around food inflation starting to ease? According to new research from FMI, the Food Industry Association, shoppers feel they have “more or less control” over their grocery finances, yet remain worried about rising food costs. The findings from the latest U.S. Grocery Shopper Trends 2024 report shed light on current consumer sentiment towards food affordability and inflation.
Consumer Concerns About Food Inflation
The concern about food affordability has declined over the past year, with a majority of shoppers feeling they have “more or less control” over their grocery spending. However, more than two-thirds of surveyed consumers maintain they are “very or extremely concerned” about retail food inflation. This indicates a persistent worry about rising food prices despite improved control over grocery finances.
Trust in Grocers vs. Manufacturers
Interestingly, consumers do not blame their grocers for the rising prices. Instead, they point fingers at government policies, the U.S. Food and Drug Administration, or manufacturers. FMI’s Vice President of Research and Insights, Steve Markenson, highlighted this during a media briefing. According to the research, over 40% of shoppers believe their primary food store supports their financial health, while only 17% feel the same about manufacturers.
Changing Shopping Habits
More than 90% of surveyed shoppers reported making changes in their grocery shopping habits to combat rising food prices. Common strategies include looking for deals and purchasing more store brands. Notably, private label products continue to gain consumer traction as shoppers seek cost-effective alternatives.
Income vs. Rising Prices
Despite these challenges, grocery baskets in the U.S. are cheaper in “real terms” today compared to one or two generations ago. However, over half of the 75% of surveyed shoppers who experienced household income growth in the past two years claim it hasn’t kept pace with rising food prices. This discrepancy underscores the ongoing struggle many consumers face amid food inflation.
While consumer concern about food inflation may be easing slightly, the majority still feel its impact. Trust in grocery stores remains strong, with many shoppers seeing them as allies in managing their grocery finances. However, the struggle with income keeping pace with inflation persists, prompting continued adaptation in shopping habits.
