\n
Global consumers say they are reshaping spending habits and lifestyle choices, driving cutbacks on
\napparel and electronics<\/p>\n
June 23, 2025 \u2013 Blue Yonder, the world leader in end-to-end digital supply chain transformation, today announced the results of its 2025 Global Consumer Sentiment on Grocery Inflation Survey, revealing how sustained inflation, supply chain challenges and global tariffs are influencing grocery spending and broader consumer behavior across generations and regions. The survey, which polled consumers across Australia and New Zealand (ANZ), France, Germany, the Middle East, the U.K., and the U.S., found that 85% of overall respondents are concerned about inflation\u2019s impact on grocery prices, illustrating consumer unease and clear changes in purchasing decisions across the world.<\/p>\n
\u201cThe findings of this survey underscore just how widespread and deeply felt the impact of inflation is on consumers\u2019 everyday lives,\u201d said Ben Wynkoop, senior director, Global Industry Strategist, Grocery & Convenience, Blue Yonder. \u201cFrom buying fewer grocery items and cutting back on certain purchases to shopping at discount retailers and reprioritizing spending across other categories, consumers are navigating prolonged uncertainty \u2014 and retailers must adapt accordingly.\u201d<\/p>\n
Inflation Drivers: Tariffs, Rising Labor and Materials Costs and Increased Profit Margins
\nNearly half (49%) of all respondents believe newly introduced global tariffs are the leading factor behind inflated grocery prices, followed by increased costs for raw materials (42%), increased labor costs in manufacturing and food processing (39%), and increased profit margins for brands and manufacturers (33%).<\/p>\n
The perceived top factor driving inflated grocery prices differs across regions. Consumers in the U.S. (65%), the U.K. (56%) and the Middle East (50%) feel global tariffs are the leading cause of rising prices. Consumers in ANZ (50%) feel that increased profit margins for brands and manufacturers is the top factor for inflated prices, while consumers in France (48%) and Germany (47%) believe the increased cost of raw materials is the leading cause of grocery inflation.<\/p>\n
There is a generational divide, too. Baby Boomers uniquely believe that increased labor costs in manufacturing and food processing are the leading cause for grocery inflation (52%), whereas all other generational groups believe global tariffs are the top cause of inflated prices.<\/p>\n
\u201cIn today\u2019s global market, tariffs are significantly impacting grocery supply chains, resulting in inventory and logistics challenges, as well as increased costs for both retailers and consumers,\u201d said Wynkoop. \u201cLeveraging advanced technology for AI- and ML-driven scenario planning and visibility across the end-to-end supply chain can help grocers mitigate tariff-related disruptions by increasing agility, resilience and cost savings.\u201d<\/p>\n
Across Categories, Consumers Are Buying Less \u2013 And Shifting Shopping Behaviors
\nInflation\u2019s grip on grocery bills is triggering global concern from consumers. 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%).<\/p>\n
\u201cDuring times of economic uncertainty, consumers often look for ways to save money on essential items such as groceries, from shopping at discount stores to seeking out sales and opting for private label brands,\u201d said Wynkoop. \u201cAs a result, retailers tend to prioritize and invest more heavily in their owned brands to accommodate these changing shopping behaviors. Sophisticated retailers are becoming more vertically integrated from production to consumer to maintain greater control over their supply chain, increase profitability and deliver more affordable products to shoppers.\u201d<\/p>\n
Clothing and Footwear Top the List of Cutbacks Consumers Are Willing To Make
\nTo offset high grocery costs, many consumers noted they would be willing to cut back on discretionary spending. More than half (56%) of respondents are willing to cut back on clothing and footwear \u2013 this was also the top response by generations and regionally. 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%). Only 7% of respondents were not willing to reduce their other retail spending to offset grocery costs. Generationally, Baby Boomers are most likely to scale back on clothing and footwear (63%), compared to Gen X (59%), Gen Z (53%) and Millennials (50%).<\/p>\n
Globally, consumers in ANZ are the most likely to reduce spending on clothing and footwear (67%), followed closely by the U.S. (62%), the U.K. (61%), France (49%), Germany (49%), and the Middle East (47%). The next top category varied by country, with ANZ (60%) and U.K. (54%) consumers most likely to reduce spending on streaming and gaming subscriptions, followed by Germany (42%), the Middle East (40%) and France (39%) willing to reduce spending on consumer electronics. These two categories \u2013 subscriptions and consumer electronics \u2013 were tied for U.S. consumers (54%).<\/p>\n
\u201cWith most consumers willing to adjust shopping habits in response to grocery inflation and mounting financial pressures, retailers \u2013 not just grocers \u2013 need to recognize the importance of building trust with shoppers through transparency, targeted promotions and affordability-first strategies,\u201d Wynkoop added. \u201cHaving the right supply chain solutions can help retailers win with consumers during times of both economic prosperity and\u00a0difficulty.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Global consumers say they are reshaping spending habits and lifestyle choices, driving cutbacks on apparel and electronics June 23, 2025 \u2013 Blue Yonder, the world leader in end-to-end digital supply chain transformation, today announced the results of its 2025 Global Consumer Sentiment on Grocery Inflation Survey, revealing how sustained inflation, supply chain challenges and global …<\/p>\n","protected":false},"author":2,"featured_media":115911,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[439],"tags":[],"class_list":["post-115913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-english-news"],"yoast_head":"\n