Consumers will hit the pause button on purchasing an item once its price has risen by an average of 40%. This news comes as the majority (94%) of shoppers have seen an increase in their grocery bills, according to the results of a new survey from Ingredient Communications.
The survey revealed that US and UK shoppers are most likely to accept price increases for low-cost staple goods — milk (dairy) can increase in price by an average of 65% before they would stop buying, while bread and fresh vegetables can increase by 62% and 60%, respectively. Consumers are less likely to accept price increases for products in the higher-priced nutrition categories. For example, a price increase of 17% in protein powder is enough for consumers to stop buying it.
Almost all (94%) consumers have noticed higher grocery bills, and more than three-quarters (79%) blame supply chain problems. As a result, nearly half (48%) have switched to a cheaper brand in the previous three months, and 26% switched to a retailer’s version of a product.
Richard Clarke, Managing Director of Ingredient Communications, said that brands will need to use high quality ingredients to demonstrate added value and build trust through sustainability, proven efficacy, and strong co-branding, or a combination of these factors. “These values, communicated effectively, will tie a consumer to a brand more closely, mitigating the impact of price increases on purchasing behavior.”
