Purse strings are being tightened significantly due to economic pressures affecting household spending across the UK…but what does this mean for FMCG brands?
Inflation is on the up and a recession on the way with brands undoubtably being impacted as consumers make significant changes to the products they usually buy:
Are non-essential items and impulse purchases affected?
Are consumers downtrading?
We surveyed our LaunchPilots to find out more about their current buying behaviours and future purchase intentions….
It’s no surprise that 82% of those we surveyed are having difficulty managing their household expenses vs. 6 months ago, with 81% anticipating further difficulties moving into 2023.
How does this affect their grocery basket spend?
Almost ½ are switching to stores own label products across a variety of categories, with 39% of consumers consciously buying fewer products, resulting in non-essential products taking a hit.
40% have bought stores own label products or switched brands for household cleaning products such as surface cleaners, wipes etc within the past six months; this figure is set to increase to 60% for future buying behaviour which is concerning for branded goods.
Our survey data has also shown that the frozen foods category could see significant changes, with an increase from 32% in the past 6 months, to 55% moving forward for those who intend to purchase alternative brands than their usual in order to save money.
Other grocery categories potentially affected by changing behaviours include:
Household Paper products
Snacks and Cereals
All seeing on average 10-15% potential increase in switching behaviour moving forward as prices continue to soar.
In addition to price increases and switching behaviours, consumers are reducing the amount of trips to the supermarket due to increased fuel costs; UK consumers are also eating out more post pandemic which could also be contributing to lower basket spend.
So how does your brand remain top of mind through price inflation?
Launchpad have a variety of research solutions to assist you in finding answers by further understanding shopper intentions during turbulent economic times and in turn supporting brand & retail growth strategies.
Get in touch with the Launchpad team to find out more.