Rising Food Prices Shift Grocery Buying Habits
NEW YORK — Feeling the financial strain amid soaring food costs, Americans are cutting back on groceries.
According to a survey of 70,000 U.S. consumers from Tastewise, a generative-artificial intelligence (GenAI) consumer insights platform, shoppers are making drastic changes to their spending and shopping habits.
Here's what respondents revealed:
- A third of households are now buying less food, while one in 10 has completely stopped dining out, opting to cook at home instead.
- When asked about their cost-cutting strategies, two-thirds of shoppers said they are switching to cheaper brands and products, while nearly one in five is bulk-buying during promotions to save money.
- Beyond what they buy, rising prices are also reshaping where consumers shop. With many looking for the best deals, 70% now prefer to get their groceries online or use delivery services, likely because it's easier to check prices and find better discounts. Meanwhile, just one in three shoppers turns to local farmers for their food.
"Rising food prices are reshaping the way consumers make choices at the grocery store. Our findings show a significant shift towards affordability, with consumers prioritizing value over brand loyalty and exploring new ways to manage their budgets. For food and beverage brands, this presents a unique chance to connect with their audience by offering value-driven solutions and products that align with their evolving needs," said Alon Chen, CEO and cofounder of Tastewise.
Certain product categories have been hit the hardest. According to Tastewise, more than 40% of consumers say coffee and alcoholic drinks have seen the most striking price increases, followed by fresh produce (28%). Protein-rich items such as meat, fish and eggs are also a major concern, with 24% pointing to these products as significant contributors to their growing grocery bills.
Tastewise's GenAI-driven consumer data platform is used by some of the largest food and beverage companies, including Campbell's, KraftHeinz, Nestlé, Mars and PepsiCo. The company is headquartered in New York.