Sector News

Another survey shows consumers cutting back on F&B purchases, switching brands because of inflation

November 6, 2022
Food & Drink

The news has been tough to interpret lately. On the one hand, we have just seen several earnings reports where F&B giants like PepsiCo and Coca-Cola have reported resilient demand for products despite price increases — and have indicated that prices may go even higher. On the other, several consumer surveys have shown that people are feeling the pinch at the grocery store.

Adding to the latter body of work is a new survey commissioned by Ingredient Communications showing that almost all (97%) of U.S. consumers have noticed price increases on food and beverage products in the past three months.

As a result:

  • 50% have purchased a food or beverage product less often, up from 38% last December
  • 62% said they had switched to a cheaper brand, compared to 58% last year
  • 21% said they had stopped purchasing a product altogether, roughly in line with the results from last year

Richard Clarke, Managing Director of Ingredient Communications, said: “Since we conducted our first price sensitivity survey, the war in Ukraine has exacerbated an already volatile situation. As well as difficulties sourcing certain raw materials, fuel costs have gone through the roof. With winter on the way in the western hemisphere, and no sign of Russia backing down, demand for energy will spike and it’s hard to see any short-term easing of the inflationary pressures that food companies and consumers are facing.”

By Krista Garver


comments closed

Related News

March 19, 2023

Kellogg reveals new business names ahead of planned cereal unit spin-off

Food & Drink

The global snacking, international cereal and noodles, plant-based foods and North American frozen breakfast business will be known as Kellanova – home to brands such as Pringles, MorningStar Farms and Nutri-Grain. Kellanova’s portfolio will also encompass cereal brands, including Frosties, Special K, Krave and Coco Pops.

March 19, 2023

Nestlé pilots refillable vending machines in Indonesia

Food & Drink

Nestlé is piloting refillable vending machines for its Milo and Koko Krunch brands as part of its effort to explore solutions that help to reduce the need for disposable packaging. In collaboration with digital start-up Qyos by Algramo, the machines will be available at two retailers in Indonesia during a 4-6 month trial period.

March 19, 2023

Carlsberg appoints new chief executive

Food & Drink

Carlsberg has announced that Jacob Aarup-Andersen will join the company as chief executive officer, replacing Cees ’t Hart, who will retire by the end of Q3 2023. Since 2020, Aarup-Andersen has served as CEO of ISS, a global facility services company that operates in 60 countries.

How can we help you?

We're easy to reach