Rising food prices have nearly all Americans feeling the pain, a new study by Nielsen shows. With less money to spend and hungry mouths to feed, U.S. consumers are increasingly looking for ways to stretch their budgets and find the best value for the money.
Some highlights from the study include:
• Americans are feeling the pain of rising food prices, reporting the lowest percentage globally (9%) of being able to spend freely.
• Only 39% of Americans say they’re living “comfortably” despite the U.S. reporting the highest percentage (46%) of households earning an income above $50,000 compared to the global average of 22%.
Impact Of Food Inflation On Retailers
• Shopping during inflationary times takes a beating: 4% increasing trips/9% Increasing Dollars per trip
• Discount stores, destocking/clearance retailers, Warehouse Club Stores are poised for success
• Convenience channels, family-owned stores and specialty retailers are most vulnerable.
Strategies To Save Money
• Private Label Power: 47% of Americans say they would shop more for private label brands when food prices rise
• 48% of Americans say they will stock up on regular-use items when they are on sale, especially unbranded cereal/grains, fruits, and vegetables.
• 48% of U.S. consumers will exclusively purchase sale price items when prices rise.
• 44% of U.S. consumers will look for deals online.
• Rising food prices mean U.S. consumers will cut back on dining out (68%), new clothes & accessories (56%), snacking (50%), and travel (40%).