Research: High inflation is hitting consumers, reaching for own private label brands
Consumers feel high inflation and limit their grocery shopping. They also visit them more often at discounters, such conclusions can be drawn from the data from the Nielsen IQ agency.
As many as 7 out of 10 consumers declare that they know the prices of food products, and 8 out of 10 look for a promotion when shopping, according to the latest data from the Nielsen IQ agency. Although the share of products at the promotional price in the shopping cart is slightly lower than a year ago, it still remains at over 32%.
Polish consumers surveyed by Nielsen IQ declare that they change stores if they find a product at a promotional price in another. In 2021 and 2019, this indicator was 28%.
The search for promotion is also followed by general consumer savings caused by high prices. 51 percent claims to only buy basic products and forego luxury goods. Overall, 34 percent. of consumers buy less than the year before. In recent years, this indicator was at the level of 27 and 26 percent.
As Nielsen IQ analysts point out, the increase in the FMCG basket is primarily due to rising prices, not volume. The latter even fell by 1.4 percent in the first quarter of this year.
The position of individual sales channels is also changing. Along with the growing importance of the price of products, more and more consumers decide to buy food at discount stores, while the importance of the small format decreases.
This is also followed by the growing sales of private label products. In the first quarter of 2022, their annual sales increased by more than 10%, while branded products only by 6.5%, and one should remember to adjust for high inflation. Already 42 percent. of consumers declare that own private branded products are a cheaper alternative to branded products. Previously, this ratio was 45 and 47 percent.
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