American grocery shoppers are noticing their wallets feeling lighter as food costs continue to rise. From fresh produce to private label products, shoppers are finding ways to stretch their dollars further to put food on the table.
According to the latest Ipsos Consumer Tracker, most Americans report spending more on groceries this year than last. But what exactly is driving these shifts in spending, and how are people adapting?
In this article, Ipsos iSay team explores how rising prices may be responsible for influencing consumer behavior and changing the way we shop.
Americans Are Spending More on Groceries
Across the board, Americans are seeing their grocery bills go up. According to the Ipsos Consumer Tracker, nearly six in ten (57%) are spending more on groceries in 2024, with only a small portion (8%) reporting they are spending less. For many, the higher prices reflect inflationary pressures on essentials like meat, dairy, and pantry staples.
Interestingly, about a third (32%) of Americans say they are spending about the same amount on groceries, holding steady despite rising costs. Whether they’re managing to stay on budget through careful planning or changing how they shop, this group is effectively navigating challenging times while keeping their budgets relatively stable.
Spending on Fresh Produce and Meat Remains Steady
When it comes to fresh produce and meat — two staples of many American diets — spending habits are holding steady for the majority. Just over half of consumers (51%) report no change in how much they spend on fresh produce, and about the same (53%) say this is true for meat as well. But while most shoppers are keeping their spending consistent, others are feeling the need to adjust.
Roughly one in three (35%) are spending more on fresh produce, likely driven by both rising prices and a desire to prioritize healthier meals at home. Similarly, one in four (25%) report an increase in their meat spending, despite the steady prices for some cuts. For many, these categories are non-negotiable — even with higher costs, Americans are willing to pay more for fresh ingredients.
On the flip side, only about one in ten (12% for produce, 18% for meat) have cut back, likely due to budget constraints or shifting dietary preferences.
Mixed Spending on Ready-to-Serve Meals
Ready-to-serve and ready-to-heat meals — a convenient option for busy families — show a mixed pattern in spending. About four in ten Americans (39%) say they are spending the same on these products as they were at the start of the year, but the remaining consumers are divided. Almost one in five (18%) are spending more on these meals, while others (21%) are cutting back.
This split could potentially reflect differences in how Americans are approaching meal preparation. Some households may be relying more on convenience foods as they juggle hectic schedules, while others are opting for home-cooked meals as a cost-saving shopping smart measure. Regardless of the approach, the spending on these quick-prep meals is likely evolving based on personal needs and financial priorities.
Private Label Products Are Growing in Popularity
Private label or store-brand products are emerging as a popular choice for budget-conscious shoppers. More than one in three Americans (36%) report spending more on these products this year. Private labels, which often offer similar quality at lower prices compared to name brands, provide a way for families to stretch their grocery dollars without sacrificing essentials.
For many consumers, the shift to private labels is a smart financial move, especially as grocery prices continue to climb. Although nearly half (47%) of respondents say their spending on private label products hasn’t changed, the uptick in those opting for these more affordable alternatives likely suggests that price sensitivity is driving some of these decisions. Store brands are becoming the go-to solution for shoppers trying to maintain their lifestyle on a tighter budget.
The Comeback of Coupons
As grocery bills rise, shoppers are turning to tried-and-true methods to save money. One in four Americans (26%) report using coupons more frequently, with nearly half (43%) saying their coupon use has at least remained steady.
The increased coupon use likely suggests a return to traditional savings strategies in the face of rising costs. Whether through digital coupon apps or clipping coupons from local newspapers, consumers are finding ways to offset the increased costs of their weekly grocery trips. It’s a small but effective way to save on essentials, and many are taking advantage.
Shoppers Adapting to Rising Costs
In a year when grocery prices continue to climb, American shoppers are adapting in creative and resourceful ways. From prioritizing spending on fresh produce and meat to turning to private labels and using coupons, people across the country are finding ways to make their dollars stretch further. While rising costs are undeniable, consumers are showing resilience in their shopping habits, making small changes that can add up to big savings.
What’s in your cart says a lot about how you’re managing today’s grocery prices. Whether you’re sticking to your usual habits or finding new ways to save, the trends are clear: Americans are making smart choices to navigate the challenges of grocery shopping in 2024.
Want to share how you’re adapting your shopping habits? Take part in Ipsos iSay surveys and let us know how rising grocery costs are affecting your household. Your opinions help shape a clearer picture of how Americans are shopping today.
The Ipsos research shared in this article has been sourced from: https://www.ipsos.com/en-us/heres-how-people-are-spending-their-grocery-dollars
