What do Gen Zers and Millennials fear these days? Rising interest rates and the economy are two possibilities, but according to Cleo one certain concern is buying groceries.
New York City-based Cleo surveyed 1,000 Americans aged 18-44, and found that 52% said buying groceries was their biggest worry. Coming in at a distant second was transportation costs (22%) and rent (13%). In addition, 38% said they are worried they will not be able to afford groceries due to inflation in the future, and 26% of employed respondents indicated they have turned to government-assisted programs like SNAP, food banks and food stamps for groceries in the past year.
The Cleo research also showed that higher-priced groceries had younger consumers pivoting with the way they shop, as 31% came up with a different strategy and 43% used buy now, pay later services to shop for groceries. A total of 46% said food inflation greatly affected their household budget.
A survey of grocery shoppers’ spending habits and attitudes by FMI – The Food Industry Association, conducted by The Hartman Group, reveals that while U.S. shoppers remain concerned about rising food prices, consumers are less likely to cut back on the number of items they purchase.
Among shoppers who are concerned about rising food prices, only 32% of shoppers in February reported buying fewer items as a strategy to address rising prices, down from 41% in October. Instead, shoppers continue to look for deals across multiple channels – supermarkets, mass retailers, club stores and online – to mitigate the impact of higher food prices on their budgets.
Food price concerns cut across shopper demographics, but Boomers are more worried about rising food prices than any other group, with 80% showing concern in February 2023 versus 69% in October 2022. Millennials polled close behind with 76% saying they are concerned, 5% more than one year ago. Such concerns about food costs coincide with an increase in spending in this inflationary environment. In February, on average, consumers spent $164 per week on groceries, up from $148 in both October and February of 2022.
