UK consumers will cut back on eating out and switch to own brands to save money as food inflation rises, new research suggests.
According to research conducted by Retail Economics and commissioned by wholesaler Palmer & Harvey, almost 50% of shoppers would cut back on takeaways and eating out to keep within their budgets, while more than half indicated they would trade down to cheaper own-brand alternatives, and 47% would consider switching to a cheaper supermarket altogether.
This trend was especially prevalent in 16-24 year olds, with two thirds of respondents suggesting they would happily abandon traditional loyalties.
Martyn Ward, managing director of Palmer & Harvey, said: “Our research shows that it will be critical to the success of food and grocery retailers, wholesalers and suppliers to rapidly adapt to changing consumer behaviour, as shoppers shift towards own label, cheaper alternatives and cut back on any non-essentials. Those that quickly grasp the opportunity to evolve their product mix and pricing will be the winners in this challenging environment.”