RRD Survey Finds Consumers Frustrated with Rising Prices
Credit: RRD
A recent survey conducted by R.R. Donnelley & Sons Company (RRD) found that consumers across key demographic groups have reached a breaking point, and are shifting their shopping habits-- prioritizing value over brand loyalty, favoring less expensive alternatives, hunting for bargains, and avoiding products considered too costly.
RRD’s annual 2024 CPG + Grocery Consumer Report reveals how inflation is continuing to influence consumer purchasing behavior. The report, based on a survey of more than 1,800 adults in the U.S., outlines current consumer sentiment and behaviors. It also highlights their priorities and expectations while shopping.
RRD’s latest report shows that brand loyalty is no longer a guarantee, with only 55% of shoppers reporting they’ll stay loyal to the store they shop at most often-- particularly baby boomers (61%) and affluent consumers (64%) -- while 45% are open to changing stores for greater savings, particularly millennials (50%).
“Consumers are becoming more judicious with their purchasing decisions, in large part due to the continued impact of external factors including inflation,” said Beth Johnson, grocery industry expert and director of client strategy at RRD. “These factors are testing the loyalty of shoppers, making it more important than ever for marketers to rethink how they engage with buyers. Brands will need to meet shoppers where they are by emphasizing value and savings to hold their attention.”
Across the key demographic groups, top findings from the survey include:
Consumers are frustrated with rising prices
88% of consumers express frustration with rising prices across categories, including groceries, gas and restaurants. This sentiment was most associated with grocery shopping overall (86%), driven by the rising costs of food and beverages (80%).
This is the case across all age groups and income levels, with 87% of baby boomers and 79% of households with $100K+ income expressing concern or frustration over food and beverage prices. Price sensitivity continues to be a universal focus, offering brands both a challenge and an opportunity to meet the needs of consumers.
Shoppers are shifting strategies to stretch dollars
In order to combat rising prices and ensure that every dollar counts, consumers are adjusting their shopping behaviors by stocking up during sales (41%), purchasing fewer items (37%), switching to less-expensive name brands (37%), switching from name brands to private label brands (35%), using more coupons and discounts (34%), and by sticking to their shopping lists (32%).
Coupon redemption in mass and variety/discount stores increased by 9% and 37%, respectively, compared to the first half of 2023, indicating the importance of brands offering value-oriented options to consumers.
Consumers look beyond the price tag
While price is top of mind for consumers, it isn’t the only factor driving their shopping choices. Regarding store selection, 68% of consumers prioritize convenience and proximity to their homes, with baby boomers valuing close proximity the most (76%).
Many shoppers (32%) also report prioritizing an engaging shopping experience, even if the store is located farther away than others-- particularly Gen Z (39%), millennials (37%) and parents (38%).
Consumers want retailers to understand their priorities
Shoppers are making it clear about what they want from their grocery stores and CPG brands: convenience, value and personalization.
Consumers reported prioritizing a variety of factors including relevant deals (59%), personalized discounts (55%) and tailored recommendations (52%). Staying local was also shown to be important to shoppers with 57% preferring to shop at stores that feature locally grown, raised or produced products, and 56% reporting that they would like to see more advertising for products produced or grown close by.
For retailer or brand selection, fair prices are deemed to be the biggest priority for consumers (58%), up 5 points compared to last year. High-quality products (45%) and coupons and discounts (41%) are also driving factors for shoppers. Notably, data privacy (39%) is also influencing consumers’ decision-making, up 19 points from last year.
View the full 2024 CPG + Grocery Report.
Methodology
RRD commissioned a survey of 1,800+ consumers across demographics and financial statuses to understand their attitudes, goals, and mindsets. RRD also surveyed more than 200 decision-makers from U.S.-based grocery, drug and mass retailers. All respondents are involved in processes related to their organization’s marketing, digital, omnichannel, eCommerce, in-store technology and merchandising functions.
The preceding press release was provided by a company unaffiliated with Printing Impressions. The views expressed within do not directly reflect the thoughts or opinions of the staff of Printing Impressions.
