OVERSTRETCHED CONSUMERS CUT BACK: Food and Beverage Industry Takes Hit as Consumers Save Money.
Seventy-two percent of U.S. consumers intentionally took steps to save money because of inflation in May, according to a Morning Consult survey, which showed that the food and beverage industry is being impacted significantly by consumers’ cost-savings techniques.
Over half (53%) of U.S. adults said that they have changed their eating and drinking habits as a result of inflation last month. More than 8 in 10 survey respondents said that they are eating out less often, and roughly three-quarters are going to bars less often. Consumers are also purchasing less meat—72% of consumers say they are doing so, and the number rises to 81% among baby boomers. Sixty-eight percent of respondents reported that they are consuming less alcohol.
Demographics that earn less than $50,000 and who have children under 18 years old in the household are more likely to cut back on spending, with those in the Midwest the most likely to have made adjustments, and those in the Northeast being the least likely. Women are 13 percentage points more likely to have said they’ve adjusted their spending habits, which could reflect that women are more likely than men to identify as the household’s primary grocery shopper.
But this is good because it’s forcing people to be healthier, right? Not so much:
Health and wellness habits are decreasing with the increase in inflation—57% of respondents are buying less produce, while 52% have stopped buying organic produce. Twenty-two percent of respondents have stopped a specific diet, and that number jumps to 28% when looking at the millennial demographic.
Thanks, Joe.