Food companies feel the pain as consumers reject higher prices

Grocery inflation is slowing due to a combination of factors, including lower ingredient prices, increased competition among retailers, and consumers becoming more price-sensitive and opting for promotional pricing. Additionally, food producers have started to offer discounts and adjust their product offerings to cater to budget-conscious shoppers.

Consumer behaviors have changed regarding grocery prices as a result of inflation and economic pressures. Shoppers are becoming more frugal, with six behaviors strongly connected to frugality observed over a five-month period1. These include efforts to economize, such as reducing food waste and buying only essentials, and making trade-offs, like switching to cheaper protein sources and choosing less expensive ingredients. Consumers are also more likely to buy private-label goods and seek out deals and promotions.