Report highlights
1. Consumer pulse: priorities and pressures.
Consumers across all income levels are united by a shared frustration with rising prices, especially while grocery shopping, where the cost of essential items like food and beverages has become a significant concern.
Overall consumer frustration
of consumers express frustration with rising prices across categories, including groceries, gas, and restaurants.
Grocery shopping frustration
- Highest: Grocery shopping overall (86%), driven by the rising costs of food and beverages (80%).
Category breakdown
Frustration by demographic
- Baby boomers: 87% expressing concern over food and beverage prices.
- Affluent consumers: Even households with $100K+ income show 79% frustration.
Frustration levels for grocery food and beverages
Expert take:
Rising prices, especially in the grocery sector, are putting pressure on consumers across all income levels. Price sensitivity is a collective concern, presenting both a challenge and an opportunity for brands. To address this, we recommend that brands focus on offering value through personalized offers and relevant discounts. These strategies will help them adapt to shifting priorities, stay relevant, and strengthen customer loyalty.
2. Shopper strategies: changing behavior to stretch dollars.
Consumers are adjusting their grocery shopping habits to make every dollar count. From stocking up during sales to switching to private-label brands, these strategies highlight how shoppers are adapting to economic pressures.
Behavioral changes to save money
37%
Switch to less expensive name brands
35%
Switch from name brands to private-label store brands
34%
Use more coupons and discounts
34%
Buy products only when on sale or with a coupon
Coupon redemption insights
- Grocery stores account for 59% of total coupon redemptions*
- Redemption in mass and variety/discount stores increased by 9% and 37%, respectively, compared to the first half of 2023.
![representation of grocery coupon]()
Consumer sentiment
58%
Sticking to shopping lists
58% agree they are trying not to deviate from their shopping lists to keep costs down.
49%
Splurge on home cooking
49% have reduced dining out but will spend more on food to cook at home.
43%
Willing to drive further
43% are willing to go the extra mile(s) to save money on groceries.
Preference for mailed ads or postcards is on the rise
Fifty-four percent of consumers now prefer receiving coupons through mailed ads or postcards, marking a five-point increase since June 2023. Significant jumps include Gen Z (+9 pts), millennials (+6 pts), and Hispanic consumers (+12 pts).
Coupon books are in demand
Fifty-one percent of consumers prefer getting coupons from a coupon book in a newspaper or the mail, up five points from June 2023. Notable increases are seen among millennials (+9 pts), Hispanic consumers (+12 pts), and baby boomers (+8 pts).
Expert take:
Consumers are becoming increasingly strategic in their shopping habits, a reflection of the pressure they face from rising costs. This shift is driving greater use of coupons, private-label brands, and careful shopping practices, signaling a need for brands to offer a range of value-oriented choices to stay competitive. CPG brands can position themselves as a smart alternative to dining out, giving shoppers both the savings they need and the premium options they want, as many are trading both down and up on groceries.
![Michelle Garcia]()
Michelle Garcia, Director of Client Strategy, Consumer Packaged Goods
3. Decision drivers: where and why shoppers choose to buy.
When it comes to making shopping choices, consumers are guided by more than just price. They seek a balance of convenience, experience, and overall value. These factors play a major role in shaping where shoppers choose to spend their money, with generational preferences further influencing these decisions.
Factors influencing store selection
68%
Convenience and proximity
68% of consumers prioritize convenience and proximity to their homes, especially among baby boomers (76%).
32%
Engaging shopping experience
32% of shoppers, particularly Gen Z (39%), millennials (37%), and parents (38%), prefer stores offering a unique and engaging shopping experience, even if it's farther away.
What retailers believe works
Top tactics to reach and activate shoppers
Where retailers plan to invest
Top marketing technology investments (next 12–24 months)
Retailers should explore these high-impact tactics more deeply, as consumers value personalized and engaging experiences — like loyalty programs and discounts — more than retailers are currently prioritizing them.
Expert take:
Shoppers today are balancing convenience with the desire for a meaningful shopping experience. This shift presents a challenge for retailers. They must not only be close to their customers but also offer an engaging and personalized experience to stand out. While retailers recognize the effectiveness of tactics like loyalty programs and personalized offers, there’s often a gap between what they know works and where they choose to invest. Bridging this gap is best accomplished through a marketing culture that relentlessly tests, learns, and implements new ideas based on real data. Aligning investments with proven strategies is critical to capturing and retaining these value-driven shoppers.
4. What shoppers want: priorities and expectations.
Shoppers are clear about what they want from their grocery stores and CPG brands: convenience, value, and personalization. However, while retailers may recognize these demands, the challenge is aligning their strategies with consumer priorities to foster lasting loyalty.
Consumer priorities
Relevant deals
59%
prefer shopping at retailers that understand their buying habits and consistently offer relevant deals.
Preference for local products
57%
prefer shopping at stores that feature locally grown, raised, or produced products.
Desire for local advertising
56%
would like to see more store advertising for products produced or grown close by.
Personalized discounts
55%
appreciate brands that send personalized discounts or rewards, which make them feel valued.
Tailored recommendations
52%
enjoy a positive experience when stores recommend products based on their interests and needs.
Loyalty through personalization
47%
say tailored messages, offers, and recommendations foster loyalty to a specific store or brand.
Top factors in retailer or brand selection
Fair prices
High-quality products
Coupons and discounts
Data privacy
In-store experience
Video screens in stores
33% have noticed video screens with ads, offers, or discounts, particularly among parents (40%) and millennial parents (42%).
Among those aware of video screens
Attention-grabbing
Product discovery
Convenient information
Enhanced experience
Concerns for retailers
There is growing concern about the effects of inflation on consumer purchasing power.
* Higher concern for small retail ($399M or less) at 34%
Managing security and privacy are top concerns for smaller advertisers ($399M or less), with
46%
identifying them as key issues.
Loyalty vs. savings
55%
Tend to stay loyal
55% of shoppers are loyal to the store they shop at most often, especially baby boomers (61%) and affluent consumers (64%).
45%
Willing to switch
45% are open to changing stores for greater savings, particularly millennials (50%).
!
Loyalty:
no longer guaranteed
Loyalty at risk
Impact of inflation
57% of consumers prioritize saving money over loyalty.
Demand for greater savings
57% agree that stores need to offer more savings to retain their loyalty, with affluent shoppers (65%) more likely to agree.
Expert take:
Retailers are navigating a complex landscape where consumer expectations are evolving rapidly. Shoppers value personalization, fair pricing, and data privacy more than ever before, but loyalty is no longer a given. Retailers must continuously innovate and align their strategies with consumer demands to maintain loyalty and stay competitive.