Consumers today are feeling the pinch in their wallets. But this doesn’t mean they’re only hunting for the cheapest options. According to data from NielsenIQ, people are making smart choices, trading up, down, or switching entirely based on their health, values, and budget.
Sherry Frey, a VP at NielsenIQ, points out a split in consumer attitudes. Some are doing well financially, while others are struggling. Despite this, both groups share worries about rising grocery prices and global issues, leading them to spend more cautiously.
This cautious approach creates fresh opportunities for grocery brands. As dining out becomes less frequent, people are shopping more often for premium at-home dining options. Interestingly, it’s not just wealthier consumers looking for high-quality products—many lower-income shoppers are eager to try new and premium items.
So, what do consumers mean when they seek “higher quality”? It’s about trust and values. They want products that are deemed “better for” society, the planet, and each other. During tough economic times, sales of these “better for” products still grew, highlighting a shift in priorities. Even when some companies back away from sustainability claims due to political pressures, consumers continue to demand them.
To earn consumer trust, brands need to effectively communicate their values. This can include third-party certifications and clear messaging about sourcing and sustainability on packaging. By aligning with consumer values, brands can connect more deeply with shoppers who are looking for more than just price.
This evolving landscape highlights the importance of understanding consumer dynamics. Brands that recognize this complexity can avoid oversimplifying their approach and better meet customer needs.
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