According to a study from Information Resources, Inc., the lagging economy is driving a dramatic move back to basics and a reversal of decades-long trends for convenient and healthier foods.
Roughly half of all consumers with incomes less than $55,000 per year say they have trouble affording the groceries they need, while nearly a quarter of those earning between $55,000 and $99,000 also say so. Among those with incomes over $100,000, 16% report having trouble. Some 42% of consumers say they have given up favourite food brands because of rising prices and economic concerns.
The "IRI Times & Trends Special Report: Competing in a Transforming Economy" report finds that escalating prices have bred high price sensitivity, driving declining demand across multiple categories, growth in private label, trial of lower-priced brands and accelerated channel migration.
Though changes in shopping and purchase behaviour vary based on life stage and presence of children, those with lower-incomes report being the hardest hit.
Consumers are increasing purchases of basic ingredients and meal components, reducing restaurant spending and decreasing purchases of "non-essentials":
Additionally:
• 53% of consumers report that they are cooking from scratch more now than they were six months ago
• Stores are seeing a resurgence in sales of frozen foods, perishables, and "center-store" items
Please access more information through IRI here, or Marketing Charts here.
Article courtesy of MediaPost.
