A recent survey conducted by Deloitte has revealed that an increasing number of Germans are changing their grocery shopping habits due to rising prices. The survey, called the Global Consumer Pulse Survey, found that many consumers are opting for cheaper food options or eliminating certain product groups from their shopping lists.
According to the survey, 37% of respondents now prefer to buy cheaper supermarket brands, while 35% are purchasing cheaper types of meat. Additionally, 20% of respondents said they are buying fewer groceries than they actually want, and 25% stated that they are only buying essential items, cutting back on sweets and delicacies. Deloitte pointed out that consumers are adapting their habits and routines in order to make do with their available financial resources, a trend that extends beyond just food purchases.
The survey also found that one in three consumers in Germany experiences financial stress when shopping for groceries. Although annual inflation in Germany reached a 14-month low of 6.1% in May 2023, down from 7.2% the previous month, it remains well above the European Central Bank’s target of 2%. Food prices have slowed their increase compared to the previous month but still remain in double digits, with dairy products and bread and cereals experiencing the highest increases at 28.2% and 19.3%, respectively.
Deloitte’s analysis is based on a representative survey of approximately 25,000 consumers from 25 countries, including around 1,000 respondents from Germany. The survey was conducted in April 2023, with a supplementary survey conducted in June using the same sample.
In addition to changes in consumer behavior, the survey also highlighted that many respondents expressed a lack of understanding about why prices are at their current levels. Only 41% of respondents stated that they have an understanding of the reasons behind the elevated prices, while more than two-thirds (64%) believe that companies are raising prices more than necessary to generate additional profits.
Deloitte’s findings indicate that rising costs are having a significant impact on consumers’ purchasing decisions and overall shopping experience. The survey results underscore the need for greater transparency in price formation and suggest that companies may need to reassess their pricing strategies to align with consumer expectations.
As consumers continue to face financial pressures, it is likely that the trend of cutting back on purchases and buying cheaper products will persist. This has implications not only for the grocery industry but also for the wider economy, as reduced consumer spending could potentially contribute to a slowdown in economic growth.