Consumers Navigate Inflationary Headwinds During Holidays
According to “Holiday Shopping,” the recently released Part VI of FMI – The Food Industry Association’s (FMI) “FMI U.S. Grocery Shopping Trends 2022” series, typical holiday stress this year is made worse by inflationary pressures, with 62% of shoppers saying that their grocery costs have risen year over year. Despite such concerns, average weekly household grocery spending is currently at $148 per week, down from the $161 peak during the height of the COVID-19 pandemic.
Ahead of the holiday season, 45% of consumers said that they were most concerned about rising meal prices compared with other holiday expenses. However, most shoppers said that they’re in control of their grocery budgets, with 71% making some changes to their holiday meal shopping to adapt to the changing economic landscape. This indicates that shoppers are still able to find budget-friendly items to meet their needs.
To beat higher holiday costs, consumers said that they’re doing the following: looking for deals (28%), opting for store brands (21%), eating more home-cooked meals (20%), making fewer dishes overall (17%), substituting more affordable options (17%), encouraging guests to bring dishes (17%), and spending less in other categories to provide holiday meals (17%).
“Food is the centerpiece for so many of our holiday gatherings,” said Leslie Sarasin, president and CEO of Arlington, Va.-based FMI. “Despite inflationary pressures, consumers are determined to enjoy the festivities this year as they normally do. The food industry is working tirelessly to keep costs down and to ensure that our timeless traditions can continue during this holiday season.”
Shortages were common during the pandemic across many industries, but efforts by food retailers and suppliers to resolve widespread supply chain issues has kept consumer confidence high leading into the holidays, according to the report. For instance, just 27% of consumers said that they were “very concerned” about food items needed for holiday meals being out of stock. If they did encounter stock issues when holiday food shopping, 50% of shoppers said that they would try something new, while 36% would look for a new recipe.
“FMI U.S. Grocery Shopping Trends 2022,” conducted with The Hartman Group, taps into the U.S. food shoppers’ journey with consumer survey data and ethnographic research. Part VI is the final release from the wide-ranging survey of food shoppers’ journeys.
