New Study Examines How Consumers Adjust Their Grocery Buying Habits
In Response to Rising Food Prices
NEW YORK Oct. 8, 2013 Eighty-five percent of global consumers in an online survey say rising food prices will affect their choice of grocery products, according to a new study by Nielsen, a leading global provider of information and insights into what consumers watch and buy.
With the global middle class growing by 70 million[i] each year and food prices expected to more than double within 20 years, fast-moving consumer goods (FMCG) companies in many markets are preparing for an unprecedented period of rising demand, economic pressures and aspirationally driven buying behavior, said James Russo, senior vice president, Global Consumer Insights, Nielsen. FMCG companies focusing solely on consumer income as a barometer of spending habits, however, are unlikely to fulfill their business growth expectations because this is not a middle class only trend. Food inflation affects all consumer incomes. By looking instead at consumer diversity, spending flexibility and the consumer demand landscape, FMCG companies can better understand real-world buying potential and more accurately scale goods and services to meet the needs of consumers in both developed and developing markets around the world.
The Nielsen Global Survey of Inflation Impact surveyed more than 29,000 Internet[ii] respondents in 58 countries to understand how respondents around the world of all income ranges adjust to rising food prices.
The Impact of Rising Food Prices on Spending Nielsens information shows that in-home food products were not the only areas of spending impacted by rising food prices. Areas where all respondents would change their spending include dining out (64%), buying new clothes (55%), spending on snack food (45%), paying for recreation and entertainment (44%) and traveling for vacation (39%).
When asked about likely spending changes to specific food categories, 14 percent of global respondents indicated they would buy more loose, unpackaged, unbranded cereal (such as rice, wheat and grains). Eleven percent said they would stock up on fresh or frozen fruits and vegetables, and 8 percent said they would buy more canned fruits and vegetables. More than half of global respondents had no plans to change their spending on staple categories like dairy products (68%), meat and poultry (62%), bread and bakery goods (60%), packaged foods (55%) and fish and seafood (52%). Half of all respondents said they would buy fewer products such as candies, cookies and other sweets (59%), chips and other snack foods (58%), carbonated beverages (53%), alcoholic beverages (49%), prepared meals (48%) and convenience foods (45%).
Traditional trade is still dominant in many countries, and in these markets, commodity purchases are part of consumers daily lives, said Russo. The challenge for marketers will be introducing new brands and products when food inflation is supressing the ability for these consumers to grow their shopping baskets.
The Impact of Rising Food Prices on Private Label Brands According to Nielsen, private label or store brand products account for approximately 16 percent of global FMCG dollar share. Nielsens survey shows that in North America, one of the regions where private label is well established, 46 percent of respondents said they would shop more for private label brands when food prices rise, compared with 7 percent that would increase shopping frequency for national brands. In developed European countries, 35 percent said they would shop more for private label brands, compared with 8 percent that would buy more national brands.
Private label brands have a potential advantage during inflationary times, said Russo. However, the price must be right and marketing must be effective for private label brands to succeed. Packaging impacts trust and quality perceptions, especially when private labels extend beyond commodity or low-risk product categories.
Impact of Rising Food Prices on Where Consumers Shop When asked about how rising food prices may affect where they purchase grocery items, one-third (33%) of global respondents indicated they would shop more at discount/dollar stores, 28 percent would shop more at de-stocking/clearance stores and 23 percent would shop more at hypermarkets/mass merchandisers (23%). One-fifth of global respondents would shop more at warehouse club stores (21%), supermarkets (20%), fresh food farmers markets (20%) and outlet stores (20%) as prices rise. Twenty-one percent said they intended to grow more of their own food and 17 percent would shop more at local neighborhood stores.
When it comes to rising food prices, nearly everyone feels the pain, said Russo. Determining which product categories have staying power and which are more vulnerable is critical as consumers make trade-offs and tough in-store decisions. Likewise, as consumers continually look for ways to stretch their budgets and find the best value for money, marketers need to identify retailers that will satisfy the unique demands of consumers around the world.
Nielsens information shows that nearly half of the respondents in Singapore (48%), South Korea (47%) and Ireland (47%) intend to shop at more discount/dollar stores. Destocking/clearance stores were preferred by 45 percent of respondents in Israel and 44 percent in Greece. Forty percent of respondents in Chile and 36 percent in China said they would shop more at hypermarkets/mass merchandisers. Fresh was preferred among 46 percent of New Zealanders and 33 percent of South Africans, who intend to grow more of their own food and increase shopping frequency at fresh food markets, respectively.
Evaluating the country profile where the greatest percentage of respondents would increase shopping frequency provides
Most recent headlines
17/02/2025
TVBEurope talks to the team who brought a piece of broadcasting history back to life on BBC Wales last night
By Jenny Priestley
Published: February 14, 2025 ...
17/02/2025
Eligible studios will receive the relief directly from their local authorities, with no need to submit a claim
By Matthew Corrigan
Published: February 17, 20...
17/02/2025
As DEI initiatives come under pressure in the USA, supporters of Rise, which promotes diversity in the media and entertainment sector, discuss the continuing im...
17/02/2025
EIB Global loan will partially fund SES's continued O3b mPOWER medium earth orbit (MEO) fleet expansion enabling additional capacity worldwide. O3b mPOWER s...
15/02/2025
At Nielsen, Business Resource Groups (BRGs) play a critical role in nurturing a ...
15/02/2025
Innovation to empower creativity: Explore the latest in Lightroom
Rob Christensen February 15, 2025
0 Comments
Whether you want to remove distracting ...
15/02/2025
Wisycom, a worldwide leader in RF technology and provider of wireless solutions, announces a new distribution agreement with EQUAPHON. An Argentinian profession...
15/02/2025
DPA Microphones, the leading manufacturer of high-quality microphone solutions, is pleased to welcome Nicholas Nick Mariano and Vincent Vince Divine to the ...
15/02/2025
Tuxera, a leading provider of quality-assured file systems and networking solutions, will showcase how Tuxera Fusion SMB enables unprecedented performance for m...
15/02/2025
Bitmovin's latest Video Developer Report indicates an increasing role of AI, the slow adoption of next-generation codecs, and continuing challenges when it ...
15/02/2025
When Michelin Enterprises set out to promote its prestigious Hotel Guide in the new Sleepless in the Kitchen , campaign, veteran German/Slovenian gaffer Robert...
15/02/2025
Formula E, the world's first all-electric racing series, revolutionizing motorsport with cutting-edge technology and a commitment to sustainability has sele...
15/02/2025
Agile Content, a global leader in TV and video technology solutions, announces its rebranding to AgileTV.
The transition to AgileTV stems from a commitment to ...
15/02/2025
Hiltron Communications will promote the latest additions to its range of satellite communication products, systems and supporting services at GovSatCom 2025. Th...
15/02/2025
Following the success of the original Airglow Booklight, DoPchoice debuts a new addition to their inflatable line the Float. This lightweight, inflatable, round...
15/02/2025
LAS VEGAS Marshall Electronics has announced that it will debut its newest camera controller, the RCP Plus, at the 2025 NAB Show at Booth N2649 between April 5 ...
15/02/2025
ATLANTA Gray Media has named Blake Sebo as the next general manager of KTUU and KYES, Gray's NBC and CBS affiliates in Anchorage, Alaska....
15/02/2025
KOKKEDAL, Denmark DPA Microphones will feature its new CORE+ technology for distortion-free microphone sound at the 2025 NAB Show, April 5-9, in Las Vegas....
15/02/2025
SWANSEA, U.K. QuickLink will launch StudioPro-NDI and StudioPro-3, two new models of its QuickLine StudioPro video production platform, at the 2025 NAB Show, Ap...
15/02/2025
Live From 2025 NBA All-Star Game Weekend: After 25 Years, Turner Sports All-In F...
15/02/2025
NASCAR Driver Cam on Max Embraces Cloud-Based Workflow for 2025 Season Chris Brown of WBD Sports says Mobii will play key part in delivering signals from the tr...
14/02/2025
Last month, we officially launched the Spotify Partner Program, a powerful new m...
14/02/2025
From an island off the coast of Lutruwita to the global stage in France SBS & ...
14/02/2025
The future of electro-optical/infrared (EO/IR) land systems is evolving so that ...
14/02/2025
Here are 5 reasons why you should attend ISE 2025
Discover more about Calrec: Learn more about Calrec's legacy of innovation in broadcast audio solutions ...
14/02/2025
World Radio Day: On the same wavelength
By Graham Murray, International Sales Manager at Calrec
To mark World Radio Day, Calrec's International Sales Ma...
14/02/2025
DALLAS and TYSONS, Va. Tegna has concluded a broadcast rights agreement that makes Tegna's KFAA in Dallas the exclusive local television partner of the Dall...
14/02/2025
Amazon's Prime Video has released a new app for Apple TV that the streamer said delivers an improved streaming experiences with faster scrolling, improved s...
14/02/2025
CLEVELAND Telos Alliance announced a software update for its Axia Quasar XR and SR line of audio-over-IP (AoIP) mixing consoles and will show the offering at th...
14/02/2025
Puget Systems Returns to HPA Tech Retreat 2025 with New Analysis Tools for Puge...
14/02/2025
Glass Animals: Tour of Earth Uses Blackmagic Live Production Workflow
Brie Clayton February 14, 2025
0 Comments
80six deploys Blackmagic URSA Broadcas...
14/02/2025
A dispute between Paramount and Youtube TV that would have pulled CBS stations and Paramount's cable channels from the streaming service has been temporaril...
14/02/2025
Colourist Deidre (Dee) McClelland details how she helped shape the distinct look and feel of whimsical Oscar-nominated stop-motion film, Memoir of a Snail
By C...
14/02/2025
BitFire said it intends to introduce forward-looking services that simplify the launch of live production workflows, and enhance real-time collaboration
By Jen...
14/02/2025
The claim by the liquidators is the latest twist in the ongoing saga of the companys collapse at the end of 2021
By Matthew Corrigan
Published: February 14, ...
14/02/2025
A carriage dispute between YouTube TV and Paramount could come to a head today (Feb. 13), with the virtual pay TV provider threatening to pull all of the progra...
14/02/2025
ENGLEWOOD CLIFFS, N.J. LG Electronics USA has opened a new in-house, state-of-the-art virtual production studio at its 360,000-square-foot North American headqu...
14/02/2025
NEW YORK In a bid to help local broadcasters find new ways of monetizing their content, the Coalition for Innovative Media Measurement (CIMM) and TVB have relea...
14/02/2025
WASHINGTON Three Democratic U.S. Senators have sent a stern letter blasting FCC Chair Brendan Carr for the weaponization of the agency for attacking broadcast...
14/02/2025
Years after launching the streaming service Apple TV+ in November of 2019, Apple has finally released a version of its steaming app for Android devices....
14/02/2025
FOOTHILL RANCH, Calif. Red Digital Cinema will make its V-RAPTOR [X] and KOMODO-X camera systems available with Nikon's premier Z Mount, providing filmmaker...
14/02/2025
DAYTONA, Fla. The Fox Sports production of this year's Daytona 500 will see the addition of a few new tech elements and the continued unfolding of the broad...
14/02/2025
Watch Bryson Battles Blind Audition on The Voice Get a Four-Chair Turn Michael Bubl said the Boston Conservatory at Berklee musical theater senior might have...
14/02/2025
2025 Daytona 500: FOX Sports Looks To Ride Super Bowl LIX Momentum Into NASCAR S...
14/02/2025
14 Feb 2025
VEON's Kyivstar and the Come Back Alive Foundation Raise USD 2....
14/02/2025
Max Renews THE PITT, Starring Noah Wyle, For A Second Season
Max
Warner Bros. Television Group
The Pitt
New Episodes Of The Medical Drama From John...
14/02/2025
This year, Technicolor proudly celebrates 110 years of shaping the magic of cinema pioneering color, visual effects, and innovation that bring unforgettable l...
14/02/2025
NBA All-Star: More Games, More Teams, More Music, More Sound From the Court Turner Sports' team will deploy familiar tech to capture all the audio By Dan D...
14/02/2025
LIV Golf Continues To Innovate With Drones, Data-Driven Graphics, and All-Access...
New Study Examines How Consumers Adjust Their Grocery Buying Habits
