Dive Brief:
- Consumer concern about food affordability over the past year has declined, and the majority of shoppers continue to feel they have “more or less control” over their grocery finances, according to FMI — The Food Industry Association’s latest U.S. Grocery Shopper Trends 2024 report.
- However, worries about rising food prices remain persistent, with more than two-thirds of surveyed consumers stating they are “very or extremely concerned” with retail food inflation.
- Despite food prices remaining a top concern, consumers aren’t blaming their grocers but rather government policies, the U.S. Food and Drug Administration or manufacturers, Steve Markenson, FMI’s vice president of research and insights, said during a media briefing.
Dive Insight:
Shoppers’ perception of inflation has shifted throughout 2024. In response, grocers continue to employ value-focused strategies to win over their customers — and the strategy is paying off.
More than 40% of surveyed shoppers stated their “primary food store” is on their side as an entity supporting their financial health, while 30% said the same for “food stores in general,” FMI found. Only 17% said the same for manufacturers and food processors, with 31% feeling they are “working against me.”
Customers’ trust in grocery stores is strong across the board
Shoppers feel food stores and online-based food retailers are also on their side when it comes to their finances.
“Sticker prices aren’t going down, but food is becoming relatively cheaper, or cheaper in real terms,” Dr. Ricky Volpe, an expert in agricultural and resource economics, said during the media briefing.
Volpe added that despite challenges such as the pandemic and related supply chain complications, grocery baskets in the U.S. remain cheaper in “real terms” today than one or two generations ago.
However, more than half of the 75% of surveyed shoppers who said their household income has increased over the past two years claim that it hasn’t grown enough to keep up with rising food prices, per the report.
How consumers’ incomes changed with rising food prices
More than 30% of surveyed shoppers felt their income kept pace with food inflation, while nearly 70% felt their income lagged behind.
More than 90% of shoppers surveyed reported having made at least one change in their grocery shopping habits to combat rising food prices, with the most common tactics including looking for more deals and purchasing store brands, according to the report. Markenson noted that the push for private labels remains especially prominent.
FMI’s latest shopper behavior report uses data gathered from 1,576 grocery shoppers between July 26 to Aug. 2, 2024.