Inflation takes a big bite out of the meat dollar in August
Consumers are feeling the pain and making changes to their restaurant engagement and grocery purchases, a survey of grocery shoppers suggests.
By Anne-Marie Roerink, National Provisioner
Sep 14, 2022
Food inflation remains extremely high and consumers are feeling the pain. They are making changes to their restaurant engagement as well as their grocery purchases, according to the August IRI survey of primary grocery shoppers.
When purchasing groceries, 85% of consumers shopped in person.
Online shopping was near equally divided between click-and-collect (9%) and
home delivery (6%). Delivery is more prevalent among Gen Z and younger
Millennials, at 13%. Shoppers are not expecting a major change in their
in-person versus online shopping: 4% expect they will buy all groceries online
in the next few weeks and months, while 66% believe they will buy all groceries
in person. The estimates among the remaining 30% range from expecting to buy
most groceries to only some online.
81% of American households bought at least one restaurant meal in
August, with the highest restaurant penetration among Gen X, at 85%. Takeout
continues to be big, with 54% having ordered meals to go. Half of American
households have eaten restaurant food on premise. Additionally, 20% have
ordered from a restaurant for home delivery. Home delivery is much more popular
among Gen Z and younger Millennials, at 31%. This means that restaurant meals
are not off the table, but consumers are more strategic about when they eat out
and what they order.
Spending continues to be affected by out-of-stocks, with shoppers
mentioning examples ranging from carbonated drinks to eggs, milk and chicken.
At the same time, when items are available for purchase, 42% stock up on
staples out of concern for rising prices or the item being unavailable next
time they shop. This may bring further imbalance to an already strained system
and has prompted some retailers to re-instate purchase maximums on items such as
chicken breasts once more.
89% of consumers remain worried about the elevated gasoline
prices and 94% are concerned about food inflation. They list examples from
departments across the store as being significantly more expensive. The list is
led by eggs, but includes meat, produce, milk, snacks, paper products and more.
Eight in 10 shoppers (78%) are making changes to their shopping choices due to
increased prices. The most popular money-saving measure is looking for
sales/deals more often (50%), followed by cutting back on non-essentials (41%),
looking for coupons and buying store-brand items more often (31%, each).
Despite the high gasoline prices, 15% switched some of their shopping to a
lower-cost retailer and/or visit multiple stores to get the best deals. This
cherry-picking behavior may be driven by 53% of consumers reporting that fewer
of the items they are looking for are on sale and 50% feel that items are not
discounted as much as they used to be.
· IRI sales data corroborates this shifting in channel choices with traditional supermarkets having lost share this year in favor of value-based formats, including clubs and supercenters.
Prolonged supply chain, labor, transportation and weather challenges in combination with a sharpening consumer reactions to the high food inflation is resulting in an ever-changing nature of the marketplace, IRI, 210 Analytics and Marriner Marketing continue to team up to bring the latest trends and analysis relative to meat department sales, including fresh and processed items.
Inflation insights ...
Meat sales August 2022 ...
Fresh meat by protein ...
Processed meat ...
What’s next? ...
more, including tables, chart