As the economy continues to rebound from recessions past, many consumers – some by necessity and some by choice continue embracing frugality. And, with consumers trending towards tighter spending habits – combined with higher commodities costs (e.g., crop, packaging, and energy) – consumer product companies have increasingly been left in a profit margin squeeze.
Key findings from Deloitte on consumer sentiment include:
- Shoppers aware of and impacted by food prices: 88 percent believe that food prices have been increasing recently, resulting in changed shopping behavior.
- Becoming more and more difficult for consumers to stretch their food dollars: 75 percent of shoppers asserted that they have purchased more lower-priced products as a result of food price increases, and 48 percent have purchased fewer food items overall due to higher costs.
- Many shoppers purchasing private labels and store brands: 40 percent of shoppers stated that they have purchased more private label products due to a rise in food prices.