135: Busting the Myth that We’re Consuming Less
As inflation continues to press consumers, volume sales are down across food and beverage. Amid economic headwinds and a return to pre-pandemic activity levels, consumer behaviors are changing, but we are not consuming less. Circana thought leaders David Portalatin and Alastair Steel explain how shifting behaviors are illustrating new patterns in consumption across retail and foodservice.
- Food inflation might be easing, but we’re still paying around 30% more for retail food and beverages than we were pre-pandemic. As consumers trade down, they are also buying smaller amounts to avoid waste.
- Where disinflation is seen in retail, it’s not occurring in foodservice, where the price of a meal is more than 4 times that of food sourced from retail. Still, growth can be seen for the morning and afternoon dayparts and at quick-service restaurants.
- Consumers are looking for deals. Restaurant apps are helping get diners in the door and feeling good about the value on offer. At retail, coupons are coming back, but not at depths that are motiving shoppers.