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From drinks to dessert, every course on the menu will experience challenges this quarter. To better understand the impact in different categories – as well as uncover the hidden opportunities for brands – we surveyed 2,000 working-age American consumers.
Alcohol is one of the hardest hit categories, with 49.0% of shoppers buying less than they did previously. Consumption has fallen dramatically; 32.6% are consuming alcohol less frequently, and 21.2% have stopped consuming it altogether because of inflation.
Takeaway: Consider a social media promotion campaign.
Coca-Cola and Pepsi are the beverage brands that enjoy the most loyalty, but even these two giants aren’t safe from downtrading. Nearly 34% of consumers have already switched to a cheaper beverage brand; Gen Z are the demographic most likely to swap.
Takeaway: Consider offering smaller drink sizes with a lower RRP.
Our retail sales team suggested there might be a shift in the coffee category; moving from foodservice back to the grocery store because of inflation. So we did a quick survey, and sure enough, there really does appear to be a shift.Andrea Ramirez, Consumer & Customer Market Insight Manager, Torani
Our retail sales team suggested there might be a shift in the coffee category; moving from foodservice back to the grocery store because of inflation. So we did a quick survey, and sure enough, there really does appear to be a shift.
Brand switching is highest in the savory snacks category: 48.9% of people have switched. But they’re not just trading down; 39% say they’re shopping less for snacks, too. There’s also rationing going on in the snacks category, with 28.7% of consumers eating smaller servings.
Takeaway: Consider individually portioned packs.
Supersize me? Nope. Thanks to inflation, consumption of fast food is on the decrease. 48.4% of consumers say they are consuming it less frequently, and a further 20.3% are eating smaller servings. This trend is most pronounced for Gen Z: 30.5% visit fast food restaurants frequently, but they’re buying smaller and cheaper meals.
Takeaway: Consider introducing a dollar menu.
Nearly 37% of US shoppers have switched to a cheaper brand in the sweet snacks category, with Millennials most likely to have changed their allegiance. Of all sweet brands, Hershey’s and Reese’s Pieces have the most brand loyalty.
Takeaway: Consider in-store promotions.
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