Inflation and high grocery prices impact holiday food donations, fresh produce purchases, survey finds

Divert Inc., a West Concord, Mass.-based impact technology company on a mission to convert wasted food into energy, has released new data from a consumer survey, which finds that high inflation and grocery prices are having a significant impact on consumers’ food donations during the holiday season, as well as their grocery shopping habits and preferences. 

The U.S. throws away more than 63 million tons of wasted food each year. At the same time, recent research from the USDA on the state of household food security shows that the nation’s hunger problem is growing rapidly. In 2022, 17 million households reported being food insecure — significantly higher than both 2021 (13.5 million households) and 2020 (13.8 million households), according to a news release.

With this backdrop, Divert commissioned the survey to better understand how the current economic climate is affecting U.S. food banks and food security in the wake of the COVID-19 pandemic, especially entering the critical holiday season, the release said. 

“Preventing waste through food donations to help feed people in need is central to our mission,” Divert CEO and co-founder Ryan Begin said in the release. “Since 2018, we have worked with our customers to facilitate the donation of more than 12.5 million pounds of food, equivalent to nearly 10.5 million meals. With this survey and our analysis, we want to shed light on the state of food donations and consumer shopping habits so that we can help drive education, understanding and real change.” 

Rising grocery prices impact consumer food donations

Nearly half, or 46%, of survey respondents said they are more likely to donate to food banks during the holiday season than at other times of the year. Yet, with the 2023 holiday season approaching — during which demand for food banks is expected to surge — only 25% of respondents said they are more likely to donate during this year’s holiday season compared to years past. Those who are donating less to food banks this season cite increasing food and grocery costs as the No. 1 reason driving their decision. 

This behavior is emerging despite overwhelming knowledge among respondents that food insecurity is a growing concern, with 85% believing that food insecurity levels have increased since the COVID-19 pandemic and 63% believing that the U.S. is significantly more food insecure than the latest USDA data shows, the release said.

The majority of survey respondents, or 64%, said they have donated food or money to food banks in the last year, citing the increasing awareness of food insecurity as a key reason influencing their decision to donate more. 

Other key findings of the Divert survey include:

• 25% of respondents said they donate to food banks once a quarter and 33% said they donate once a year. 
• Respondents donating more to food banks are doing so because of growing awareness of food insecurity (75%) followed by a passion for giving back (48%).

Changing grocery shopping habits

The current economic climate is also having a significant impact on consumers’ behaviors, with nearly 72% of Americans changing their grocery shopping habits due to high inflation and food costs, the release said. More than half of respondents, or 51%, indicated that grocery prices are forcing them to cut costs in other areas.

The survey further found that 25% of consumers said they are more anxious about their ability to afford food in the next three to six months and 30% said they are purchasing less fresh food, such as produce, due to the skyrocketing price of groceries. 

Other key findings on how consumers’ grocery shopping behaviors have changed in the past year:

• 76% of households are shopping for more discounted food.
• 58% of households are shopping at less expensive food retailers. 
• 42% of respondents are shopping for less food at a time.
• 17% of households are eating more food past its prime.
• 63% of respondents said they are throwing away more food than they would like.

Full survey results and methodology are available at divertinc.com.

Divert provides an end-to-end solution that it says prevents waste by first maximizing the freshness of food at retail; then recovering edible food to repurpose or donate; and finally, taking food that cannot be consumed and turning it into renewable energy — some of which is used to help grow more food.

Related news:

• What produce retail needs to know about the ‘just-in-time’ shopping trend
• Transforming food waste to gains: A conversation with Divert CEO Ryan Begin