Consumer trust in November 2022

Summary

• Trust in energy recovered slightly from August but is still very low compared to 18 months ago (net balance of -23 compared to +23 in May 2021).
• Trust in food / groceries is much higher generally than trust in energy (+42) but has still seen a drop compared to 18 months ago, before prices began to rise significantly (+67 in May 2021).
• Consumers are generally satisfied with the quality of food provided by supermarkets, and believe that the sector is competitive, but some express concerns that prices are being artificially inflated.
• Whilst trust in most supermarkets has decreased compared to May 2021, this is not the case for Aldi and Lidl, who have maintained their consumer trust levels amid price rises.
• Trust varies between energy companies, with Octopus enjoying significantly higher levels of consumer trust.

You can view more data and articles from our monthly tracker survey on our dedicated Consumer Insight Tracker page.

Trust rises slightly in some sectors, but is still lower than usual amid price rises

In August, our data showed a dramatic drop in trust in the energy sector, as well as more moderate drops in trust in the food / groceries sector, train companies and airlines and holiday operators. Our latest data in November shows an improvement in trust in energy, though it still mains very low compared to typical levels.

Just under a quarter of consumers (23%) said they trust the energy sector to act in their best interests, but nearly half (46%) said they do not, giving a net trust level of -23. Though better than the -42 recorded, in August this year, this is a large drop from the +23 seen 18 months ago, before significant price rises began.  

The food and groceries industry typically enjoys higher levels of consumer trust than other sectors, with net trust sitting at +42 in November. Still, this is a significant drop from the +67 seen 18 months ago.

Price rises challenge the generally trusted food / groceries sector

The food and groceries sector has historically had high levels of trust from consumers, and enjoyed a significant increase in trust amid the pandemic, as did many other providers of essential services. Amid price increases though, trust in this sector has begun to suffer, dropping from +67 in May 2021 to +42 now. This is a significant drop, but not nearly as dramatic as the drop seen in the energy market, and still, a great many more consumers trust (55%) than don’t trust (13%) the sector.

Consumers referred to healthy competition and strict regulation in the sector when explaining why they trust the food / groceries industry.

"They need to compete for custom so customers remain at the centre of their plans"

"The sector is well regulated and the supermarkets do their utmost to keep the customers loyal" 

"They have strict protocols and hygiene rules to follow and have to sell safe, edible products"

Among consumers who don’t trust the sector, price rises predictably came out as a common reason for this, particularly the perception that prices are sometimes artificially inflated, and go beyond what is necessary for businesses to offset their own rising costs.  

"Because of the large price increases and smaller packs. I feel that prices are increasing beyond production price increases"

"The prices of late have significantly increased well ahead of the inflation rate. More like 30% to inflation’s 10%.  It’s hard to trust companies or have any thought they have my best interest at heart when they increase prices to those levels"

"They are not doing enough to encourage healthy eating and occasionally seem to be price gouging or engaging in "shrinkflation" to boost profits at our expense"

Trust levels vary somewhat between different brands within the food / groceries industry. Among the sample as a whole, Aldi and Lidl had the highest trust levels, at +48 and +45 respectively (closely followed by Sainsbury's and Tesco), whilst Waitrose had the lowest level of trust (+29). This may be related to the perception of Waitrose as a more expensive supermarket, especially at a time when consumers are struggling with the cost of living. 

However, Waitrose stands out for the large difference in trust between customers and non-customers. Our analysis of trust in brands last year showed that trust is almost always higher among users of a brand compared to non-users, but this is particularly true of Waitrose. When we ask only people who shop at a particular supermarket, trust in Waitrose is +54, putting it on a par with the discounters.

Furthermore, the change in trust since the cost of living crisis varies between brands. Whilst trust levels for Aldi and Lidl have remained almost identical in November 2022 compared to May 2021, the other supermarkets have seen a drop in trust.

This maintenance of trust level for Aldi and Lidl may be related to their reputations as discount scores with lower prices. Some consumers praised Aldi and Lidl for maintaining low prices. 

"Aldi do their best to keep their prices low and this helps me to budget my shopping list and prices"

"I trust Aldi because I think they're a fair food provider. I think they sell good quality food at a reasonable price"

"I trust Lidl... They are really really trying to reduce prices for families…"

Some consumers credited Aldi and Lidl for boosting competition in the sector, by forcing other supermarkets to compete with their low prices: 

"Places like Sainsbury’s etc. now have to compete with the likes of Aldi and Lidl which offer exceptional value for money"

"I think that the discounters like Aldi & Lidl have forced all food retailers to keep prices as low as possible...which is in my best interest"

"I think they have to balance profits and retaining custom, and with discount stores like Aldi and Lidl in the market it’s had the impact of keeping others competitive"  

Though energy price rises are universal, some companies are more trusted than others

Our analysis from earlier this year indicates that the drop in trust in the energy sector has much to do with rising prices, and the perception that energy companies are prioritising their own profits at a time of crisis. Trust in energy is therefore likely to remain low, and possibly subject to further falls, as consumers continue to navigate price increases, and look toward the increase of the energy price cap from April of next year.

With prices seemingly having a large part to play in falling trust levels, it might be expected that low trust is a consistent feature across all companies in the sector, since all energy companies have increased their prices in response to their own increasing costs. However, there is variation in trust between companies.  

Shell energy has the lowest level of trust at -26 among the UK as a whole and -10 among Shell customers surveyed . Octopus, meanwhile, is the only energy company with a net trust level above zero, at +12 among the UK as a whole and a very positive +56 among Octopus customers surveyed. One member of our consumer insight panel set Octopus apart from its competitors in terms of its integrity as a company:

"They should have their customers' interests as a top priority. They don't though. It is all about the shareholders profit. The only [energy] company out there with integrity is Octopus Energy"

Such variation in trust levels between brands suggests that there are steps businesses can take to build trust, despite the difficult situation impacting on the entire home energy sector.