Consumers and the cost of food

Key findings

• The vast majority (85%) of consumers are still worried about food prices, and continue to take action to reduce their food bill.
• Trust in the food and groceries sector is still falling, now at the lowest level in a decade (+30 compared to a high of +53 two years ago).
• Price is the most common factor motivating what food consumers buy, and many want to see more budget ranges and personalised discounts to help them save money.

You can access our complete library of data to understand the challenges facing consumers from our consumer data hub.

Food prices remain a key concern for consumers

Food prices remain stubbornly high, with the latest food price inflation estimate at 12.7%. Though this is lower than the peak of 19.2% in March, food price rises remain at a level that outstrips overall UK inflation. Even with inflation slowing down, it still remains far above historic levels, and consumers’ shopping bills will be continuing to rise.  

Food prices also remain a key concern for consumers, with the vast majority (85%) still feeling worried about this, an equal proportion to those worried about energy prices.

Worry about food prices remains very high

Though our past research has highlighted the greater impact of the cost of living on certain types of households, particularly those with children, the almost universal worry about food prices shows that it is top-of-mind for all types of households. Consumers have highlighted food prices as a particular area of struggling during this cost of living crisis:

“It is difficult to manage the finances particularly when prices are continuing to rise, especially food” - Female, 40s, North West

“Food prices are ridiculously high! I have had to look at other ways to budget during this period” - Female, 60s, Yorkshire and Humberside

With concern about food prices so high, consumers continue to find ways to reduce their food bills. More than half (54%) reported having bought cheaper products due to rising costs, more specifically 48% have been buying more budget range items. A third (33%) have shopped around in different places whilst 15% have gone so far as to skip meals. Certain groups of consumers in our survey were more likely to have skipped meals, at 22% among parents surveyed, 24% among renters and 26% among the unemployed.  

Consumers have taken a range of actions to cut their food costs

Consumers shared some of the various ways they have cut food costs, from switching to cheaper products, or to cheaper shops, to going without. 

“I have had to switch from branded products to supermarket own-brand food items” - Male, 30s, Yorkshire & Humberside

“I can't even afford to buy food that I like, instead I have to buy the cheapest products that I can find in Aldi or sometimes to treat myself in Lidl. Tesco and Sainsburys [are] classified as luxury places for my budget right now” -  Female, 30s, South East

“It's a struggle to afford food, so sometimes I go without in order to pay my bills” - Female, 40s, South East

Trust in the food and groceries industry continues to suffer

As food prices rise, trust in the food and groceries industry continues to drop. Trust dropped to a score of +30 in August 2023, a slight drop again from the already nine-year low of +36 we reported in May.

Trust in the food and groceries sector continues to fall

Food and groceries has always comparatively been one of the most trusted business sectors among consumers, consistently sitting far above other sectors like broadband, banking and energy over a number of years. The recent decline, however, has brought trust in food to a level almost in line with the banking and broadband sectors (+21 and +19, respectively). Our previous data has suggested that the drop in trust is related to a perception of profits over people during the crisis, with consumers noticing price rises well above the overall rate of inflation. A recent participant from our cost of living research panel voiced this perception: 

"When retailers declare that they have a great profit it shows that they aren't doing what they claim of "helping the nation during a cost of living crisis". Male , 30s, London

Greater budget range availability would help consumers cut costs

Given the continued concern among consumers about the cost of food, this month we explored what matters most to people when shopping for food, and what would most help them save money on their shop. 

Price comes top of the list of consumers’ priorities when shopping for food, with 54% selecting the cheapest possible prices as one of their top three priorities when choosing what food to buy.  45% selected buying food that’s discounted or on special offer as a top priority, whilst 34% prioritise the healthiness of the food they're buying, and 29% prioritise how easy it is to cook and eat. 

With price being such an important factor amid the cost of living crisis, we asked consumers what they think would most help them to save money on their food shop. 35% selected greater availability of budget ranges as one of the top three things that would help them save money. Promotions on healthier products was also a popular option, with 35% selecting this, and 31% selecting more loyalty card discounts for healthier products. 

Consumers would like to see greater availability of budget ranges and promotions on healthy options

Which? Affordable Food For All Campaign

Our data demonstrates the ongoing pressure consumers are experiencing, and highlights the need to support them during this time. Which?’s Affordable Food for All campaign is calling on supermarket to: 

• Commit to making affordable and healthy basic food ranges available across their stores from major branches to convenience stores, especially in the areas of the country where people are struggling the most.
• Ensure their offers and promotions are used to support those who need help  the most and are targeted at healthy and affordable basics rather than foods high in salt, sugar and fat.
• Ensure that their pricing is clear and transparent so people can easily work out what is the best value.

Methodology

Data from the August wave of our Consumer Insight Tracker - an online poll conducted by Yonder on behalf of Which between 9th and 10th August 2023. A sample of 2,119 consumers was surveyed online and weighted to be nationally representative. 

Verbatim responses included in this article are taken either from the July wave of Consumer Insight Tracker, or our Cost of Living Panel - a qualitative insight panel following 29 households over the course of a year as they grapple with the cost of living.