How Are Rising Prices Impacting Consumer Choices?

A recent survey about consumer buying trends shows that rising prices are playing into food purchasing decisions.  The survey was conducted by the Stratovation Group in partnership with food and agriculture communications agency Inspire.

"Over half of these respondents agree that pricing has affected their food by habits," said Kenny Kuhn, vice-president of insights at Stratovation.  "In a separate question, same thing, over half of these folks that were saying it's also impacting how often they dine out and things like that.  So, that was putting a pretty big number behind those attitudes.”

Kuhn said the respondents told them they are cutting back on a number of food categories.

“Number one response is backing off of alcoholic beverages,"  Kuhn noted.  "Top response, right, but then there's a top tier. There's about five or six others that were really important, and it was gourmet items, reducing gourmet items, dining in or takeout. First protein reduction was seafood, sweets and treats, and then rounding out the top tier was beef.”

Mace Thornton, a partner at Stratovation Group, added that consumers still prefer beef, but are making tough choices.

"Beef really isn't being singled out, but it's part of that broader pattern that shows that consumers are pulling back on items that they see as discretionary or kind of high-cost things," Thornton said.  "That doesn't make it any less important for the cattle and beef industry. We don't (see) a value shift away from beef. It is a highly price sensitive signal.”

Click Here to see the results of the survey.  The research surveyed more than 800 consumers.

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