Consumers across key demographic groups have reached a breaking point and are shifting their shopping habits, prioritizing value over brand loyalty. They also favor less expensive alternatives, hunt for bargains, and avoid costly food products.
The annual survey, 2024 CPG + Grocery Consumer Report, conducted by R.R. Donnelley & Sons Company (RRD), reveals how inflation continues to influence consumer purchasing behavior.
The report, based on a survey of more than 1,800 adults in the U.S., outlines current consumer sentiment and behaviors and highlights consumers’ priorities and expectations while shopping.
RRD’s latest report shows that brand loyalty is no longer a guarantee. Only 55% of shoppers report they’ll stay loyal to the store they shop at most often—particularly baby boomers (61%) and affluent consumers (64%)—while 45% are open to changing stores for greater food savings, particularly millennials (50%).
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“Consumers are becoming more judicious with their purchasing decisions, largely due to the continued impact of external factors, including inflation,” said Beth Johnson, grocery industry expert and director of client strategy at RRD.
“These factors are testing shoppers’ loyalty, making it more important than ever for marketers to rethink how they engage with buyers. Brands will need to meet shoppers where they are by emphasizing value and savings to hold their attention,” Johnson noted.
Top Findings From the Survey
This sentiment was most associated with grocery shopping (86%), driven by the rising costs of food and beverages (80%).
This is the case across all age groups and income levels, with 87% of baby boomers and 79% of households with $100K+ income expressing concern or frustration over food and beverage prices.
Price sensitivity continues to be a universal focus, offering brands both a challenge and an opportunity to meet consumers’ needs.
Shoppers are shifting strategies to stretch dollars
To combat rising prices and ensure that every dollar counts, consumers are adjusting their shopping behaviors:
- By stocking up during sales (41%).
- Purchasing fewer food items (37%).
- Switching to less-expensive name brands (37%).
- Switching from name brands to private label brands (35%).
- Using more coupons and discounts (34%).
- Sticking to their shopping lists (32%).
Coupon redemption in mass and variety/discount stores increased by 9% and 37%, respectively, compared to the first half of 2023, indicating the importance of brands offering value-oriented options to consumers.
58% 49% 43% Sticking to shopping lists Splurge on home cooking Willing to drive further 58% agree they are trying not to deviate from their shopping lists to keep costs down. 49% have reduced dining out but will spend more on food to cook at home. 43% are willing to go the extra mile(s) to save money on groceries.
Consumers look beyond Food Prices
While price is at the top of consumers’ minds, it isn’t the only factor driving their shopping choices. Regarding store selection, 68% of consumers prioritize convenience and proximity to their homes, with baby boomers valuing proximity the most (76%).
Many shoppers (32%) also report prioritizing an engaging shopping experience, even if the store is located farther away than others– particularly Gen Z (39%), millennials (37%), and parents (38%).
Consumers want retailers to understand their priorities
Shoppers are making it clear about what they want from their grocery stores and CPG brands: convenience, value, and personalization.
Consumers reported prioritizing various factors, including relevant deals (59%), personalized discounts (55%), and tailored recommendations (52%).
Staying local was also crucial to shoppers, with 57% preferring to shop at stores featuring locally grown, raised, or produced products and 56% reporting that they would like to see more advertising for products made or grown nearby.
For retailer or brand selection, fair prices are deemed the biggest priority for consumers (58%), up 5 points compared to last year.
High-quality products (45%), coupons, and discounts (41%) also drive shoppers’ factors. Notably, data privacy (39%) also influences consumers’ decision-making, up 19 points from last year.