Consumers are cutting back on purchases and buying cheaper products due to rising costs, Deloitte research has found
A growing number of Germans have been forced to change their grocery shopping habits amid soaring prices, data from Deloitte’s Global Consumer Pulse Survey showed this week. According to the findings, many consumers are either buying cheaper food or dropping certain product groups from their shopping lists.
Around 37% of respondents said they now prefer to buy cheaper supermarket brands, while 35% said they are buying cheaper types of meat. A fifth of respondents said they are constantly buying less groceries than they want, while a fourth said they now buy only the essentials, cutting back on sweets and delicacies.
“The numerous crises and challenges of recent years have caused consumers to change their habits and routines in order to make do with the financial resources available to them. This affects a wide range of areas of everyday life – including nutrition. Our research shows: for many consumers, saving money on food purchases is the order of the day,” Deloitte states, adding that one in three consumers is “financially stressed” when shopping for groceries.
Researchers also noted that only 41% of respondents said they have an understanding of why the prices are at their current elevated level and complained of the lack of transparency when it comes to price formation. More than two-thirds of respondents (64%) said they feel that companies are raising prices more than their increased costs require, and are thus making additional profits.
Annual inflation in Germany was confirmed to be at a 14-month low of 6.1% in May 2023, down from 7.2% in the previous month, but remained well above the European Central Bank’s target of 2%. Food prices slowed their climb from the previous month, but remained in the double digits at 14.9%, led by dairy products (28.2%) and bread and cereals (19.3%).
Deloitte’s analysis is based on a representative survey of around 25,000 consumers from 25 countries, including around 1,000 from Germany. The survey was conducted on April 20-26, 2023. According to Deloitte, there was also a supplementary survey in June with an identical sample.
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