Groceries now cost about one-third more than they did in 2019, making even basic shopping trips far more expensive
Americans are becoming more careful with grocery spending as high food prices continue to stretch household budgets, forcing many families to rethink what goes into their shopping carts.
New data from Bain & Company, based on NielsenIQ grocery figures, shows shoppers bought 1.8% fewer items in June than they did a year ago. Although food prices are still rising, the increase is no longer enough to offset weaker demand.
Groceries now cost about one-third more than they did in 2019, making even basic shopping trips far more expensive.
As a result, many consumers are cutting back on purchases, choosing cheaper store brands, and waiting for discounts before buying. Per the survey:
- 80% of Americans are trying to reduce overall spending.
- 28% have specifically lowered their grocery budgets.
- More than 50% of the above shoppers said they now prefer lower-priced brands, and many also use coupons and promotions more often.
The slowdown is affecting companies
PepsiCo recently reported weaker demand in North America as shoppers became more price-conscious.
Retailers including Walmart and Kroger are expanding discounts, loyalty offers, and private-label products to attract customers.
Industry analysts say grocery chains that keep prices low on everyday essentials such as milk, eggs, chicken, and beef are likely to win over budget-conscious shoppers in the months ahead.