Inflation is resulting in higher dollar sales for fresh produce but lower volume moving through supermarkets.
Recent numbers compiled by the USDA through the market research firm IRI display it clearly when put in chart form.
Whereas numbers from 2020 reflect big retail volume increases for produce sales because of restaurant restrictions at the start of the pandemic, 2022 numbers show reduced volume compared with a year ago and higher sales numbers because of inflation.
Here are a few stories I found on the web about how consumers are responding to inflation pressures:
Consumer habits are changing in response to inflation
One key point in the Gartner piece is that marketers must consider how to account for digital price comparison tools.
How does inflation change consumer behavior?
Quote from Ravi Dhar, George Rogers Clark Professor of Management and Marketing & Director of the Center for Customer Insights:
“...perceptions of inflation are not based on actual changes in prices in the market but on the changes that draw our attention.”
Food prices see highest increase since 1979
Takeaway: Because of high inflation, more consumers might choose to go out to eat less and eat at home more.
From the Lending Tree survey: 85% of Americans say inflation has impacted their grocery shopping habits, with top changes include buying more generic brands (47%) and strictly sticking to a list to buy only necessities (43%).
