The “2025 Global Consumer Sentiment on Grocery Inflation” survey polled over 6,000 consumers in May 2025 across Australia and New Zealand (ANZ), France, Germany, the Middle East, the U.K., and the U.S.
“The findings of this survey underscore just how widespread and deeply felt the impact of inflation is on consumers’ everyday lives,” Ben Wynkoop, senior director, Global Industry Strategist, Grocery & Convenience, Blue Yonder, said in a release. “From buying fewer grocery items and cutting back on alcohol purchases to shopping at discount retailers and reprioritizing spending across other categories, consumers are navigating prolonged uncertainty — and retailers must adapt accordingly.”
In response to those concerns, almost two-thirds of consumers (65%) report they would buy fewer grocery items across categories to cope with price increases, while 42% would shop at discount and wholesale stores. In addition, approximately one-third would prefer shopping based on promotions and discounts (36%) and switching to private label brands (34%). Alcohol is facing the biggest budget cuts compared to other grocery categories, with one-third (33%) of consumers saying they would reduce alcohol purchases in response to inflation price increases.
And to offset high grocery costs, many consumers noted they would be willing to cut back on discretionary spending, such as 56% of respondents who are willing to cut back on clothing and footwear. Other top categories consumers are willing to cut back on include consumer electronics (46%), streaming/gaming subscriptions (43%), personal care and beauty (36%), appliances (33%), and automotive purchases (28%).
“With most consumers willing to adjust shopping habits in response to grocery inflation and mounting financial pressures, retailers – not just grocers – need to recognize the importance of building trust with shoppers through transparency, targeted promotions and affordability-first strategies,” Wynkoop added. “Having the right supply chain solutions can help retailers win with consumers during times of both economic prosperity and difficulty.”
