Posts Tagged “rising prices”
A recent survey conducted by R.R. Donnelley & Sons Co. found that grocery consumers across key demographic groups have reached a breaking point and are seeking out lower-cost goods.
RRD’s annual “2024 CPG + Grocery Consumer Report” speaks to how inflation is continuing to influence consumer purchasing behavior, according to a news release. The report is based on a survey of more than 1,800 adults in the U.S.
According to the survey, 55% of shoppers said they’ll stay loyal to the store they shop at most often — particularly baby boomers (61%) and affluent consumers (64%) — while 45% are open to changing stores for greater savings, particularly millennials (50%).
“Consumers are becoming more judicious with their purchasing decisions, in large part due to the continued impact of external factors including inflation,” Beth Johnson, grocery industry expert and director of client strategy at RRD, said in the release. “These factors are testing the loyalty of shoppers, making it more important than ever for marketers to rethink how they engage with buyers. Brands will need to meet shoppers where they are by emphasizing value and savings to hold their attention.”
Top findings from the survey include:
- 88% of consumers express frustration with rising prices across categories, including groceries, gas and restaurants. This sentiment was most associated with grocery shopping overall (86%), driven by the rising costs of food and beverages (80%).
- 87% of baby boomers and 79% of households with $100,000 or more in income express concern or frustration over food and beverage prices.
- Consumers are adjusting their shopping behaviors by stocking up during sales (41%), purchasing fewer items (37%), switching to less-expensive name brands (37%), switching from name brands to private-label brands (35%), using more coupons and discounts (34%) and by sticking to their shopping lists (32%).
- Coupon redemption in mass and variety/discount stores increased by 9% and 37%, respectively, compared to the first half of 2023.
- Regarding store selection, 68% of consumers prioritize convenience and proximity to their homes, with baby boomers valuing close proximity the most (76%).
- Many shoppers (32%) also report prioritizing an engaging shopping experience, even if the store is farther away than others — particularly Generation Z (39%), millennials (37%) and parents (38%).
Shoppers are making it clear about what they want from their grocery stores and consumer packaged goods brands: convenience, value and personalization, according to the release.
Consumers reported prioritizing a variety of factors including relevant deals (59%), personalized discounts (55%) and tailored recommendations (52%).
Staying local was also shown to be important to shoppers, with 57% preferring to shop at stores that feature locally grown, raised or produced products and 56% reporting that they would like to see more advertising for products produced or grown close by, according to the release.
For retailer or brand selection, fair prices are deemed to be the biggest priority for consumers (58%), up 5 percentage points compared to last year. High-quality products (45%) and coupons and discounts (41%) are also driving factors for shoppers. Notably, data privacy (39%) is also influencing consumers’ decision-making, up 19 percentage points from last year, the release said.