Forty-five percent of Americans feel they can’t afford their old lifestyle due to inflation, and 76 percent say their family has changed how it buys food, according to a consumer survey commissioned by NCSolutions, an advertising company.
"For the second time in a little over two years, consumers are pivoting to new purchasing behaviors at the grocery store," said Alan Miles, CEO of NCSolutions, in a statement. "Since the start of the pandemic, they've been swapping their favorite brands for what's available. Today, though, value is the centerpiece more often than availability, consumers are selecting brands and products to stretch their budgets as far as possible. CPG brands that meet customers where they are both in this inflationary moment and as prices ease have the best shot at keeping them for the long-term."
The hunt for value has caused both worry and frugality. Over half of American consumers believe basic food staples have become more expensive, and just under half have indicated that they have begun buying fewer non-essential food items; for 43 percent of consumers, this means only buying food that is necessary.
This has led consumers to rethink, too, the value of their favorite brands: 60 percent of consumers are seeking less expensive replacements for their favorite brands and products when its price exceeds their budget, and 43 percent look for sales to offset the cost of purchasing their favorite items.
When asked about which products are most important when shopping for groceries, most respondents ranked:
1. Affordable products that provide clear value
2. Food products that can last for multiple meals
3. Food their families enjoy
"Though it may be tempting to pull back on advertising, a more effective strategy is to recognize and respond to consumer 'stress-flation.' Brands have an opportunity now to build loyalty and attract new customers with empathetic marketing," said Leslie Wood, chief risk officer of NCSolutions, in a statement. "We're heading into a period of heavy CPG purchasing moments, such as back to school and the approaching holidays. Compelling, well-targeted advertising is a proven strategy for increasing brand equity and sales both in the short- and long-term."
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