Consumer trust and concern in May 2023
Summary
- Worry about food prices is nearly as high as energy prices for consumers
- Trust in the food / groceries industries has decreased to the lowest level in 9 years, although it remains one of the most trusted industries
- Almost 4 in 5 (77%) consumers say they have changed their behaviour to reduce how much they spend on food.
Consumer concern about price rises remains extremely high
Despite consumers' outlook on future financial wellbeing recovering recently, concern about current prices remains extremely high, especially for energy and food prices. Energy prices remain consumers' top concern (89%), but food prices are now nearly as big a worry (88%) - and it’s possible this trend will shift over the summer as central heating stays off, but food prices remain high.
Interest rates continued to rise in May, with the Bank of England rate reaching 4.5%, seriously impacting mortgage holders as a high number of fixed rate deals are due to end this year. This is reflected in consumer’s concern about housing costs remaining at very high levels (69%) having risen by nineteen percentage points in the last two years.
The proportion worried about fuel prices however continues to drop for the third straight quarter, with 78% worried, down from 88% seen back in August 2022.
Consumer trust in the food / groceries industry continues to fall
Despite remaining one of the most trusted sectors, trust in the food / groceries industry fell to the lowest level seen in almost 10 years. In May 2023, 50% of consumers said they trust the sector to act in their best interest, and 14% said they do not trust the sector, giving a net trust level of +36. This is the lowest trust level recorded in the sector has been since November 2014 when the net trust level was also +36. Trust in food and groceries has been on a downward trend over the last two years and is significantly down on the high of +68 seen near the start of the pandemic (May 2020) when supermarkets and groceries gained trust amongst consumers.
The impact of high food prices
With trust in the food / groceries industry dropping and worry about food prices increasing, we took a closer look at the impact this is having on consumers. With 83% of consumers saying they have recently been affected by increased food prices, almost 4 in 5 (77%) consumers say they have changed their behaviour to reduce how much they spend on food. The most common change in behaviour was consumers buying cheaper products (57%) and almost 4 in 10 consumers say they bought extra items when on promotion or shopped around in other supermarkets, different stores or online. More worryingly, 23% of consumers reported going without some foods and 1 in 10 skipping meals. Renters, unemployed people and those on lower household incomes (up to £21,000) were all more likely to have skipped meals in response to higher food prices than the general population (20%, 20% and 17% respectively).
Which? Affordable Food For All Campaign
Our insights show that while consumer concern about high food prices remains at extremely high levels, their trust in the industry is falling. The consumer champion’s Affordable Food For All campaign calls on supermarkets to do more to ensure own-brand budget line items are widely available throughout all branches – including in smaller ‘convenience’ stores. They should also make pricing and offers more transparent.
87,000 supporters have signed our petition so far calling on the supermarkets to take action.
Alongside the University of Leeds Consumer Data Research Centre, Which? has developed the Priority Places For Food Index which shows where in the UK people are the most vulnerable to food insecurity.
Do you want to see your supermarket take action to support you through the cost of living crisis? - Sign our Affordable Food For All petition
Methodology
The fieldwork was conducted by Yonder on behalf of Which between 10th and 11th May 2023. A sample of 2,076 consumers was surveyed online and weighted to be nationally representative.