Consumer Insights Newsletter #002
How Are UK Food Habits Changing in the Cost of Living Crisis?
Sarah Ball
Sarah's 19 years of experience in the media analysis industry hold her in good stead for her role leading on research methodology development. She was an early innovator in social media insights work and is responsible for data sourcing and tool selection.
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CONTEXT
With the announcement last week that the average energy bill would increase by 80% from October, and predictions of inflation of up to 18% in early 2023, household budgets are coming under increasing pressure. Many consumers are re-evaluating their spending habits and considering areas that can be adjusted or cut back, with the ONS reporting that 16 million have already cut back on food and essentials.
We ran an analysis of UK conversations on Twitter and Forums in the last three months (late May to late August 2022) to understand the changes people were making in relation to food, cooking and eating out. We supplemented this data with research on TikTok trends around the new Asda ‘Just Essentials’ budget range.
The data indicated that there were some major changes in behaviour relating to food and money compared to the same period in 2021.
INSIGHT:
“Eat in to survive - no fast food, no take aways, no restaurants for us”
Whilst there was a similar amount of discussion about cutting out takeaways and reducing eating out in restaurants and pubs 2022 as there was in 2021, there was a clear change in the reasons expressed for the move. There was a 73% increase in those stating that they were changing their habits to save money, whereas in 2021 people said they were cutting down due to health and diet reasons. There was an indication that inflation in the prices of meals prepared outside the home was leading to people switching to home cooking or opting for cheaper fast food. ‘Fakeaway’ recipes and takeaway-style ready meals may prove popular with those watching their budgets, as people switch to cheaper, cook at home alternatives, while lower cost fast food outlets such as McDonalds might benefit from an increase in custom from those ‘down-grading’ from more costly options. Some did point out; however, that for many on low incomes the choice is much starker than reducing discretionary spending on meals out and takeaways, deciding whether to pay the bills, feed their children or eat themselves: “I have been skipping meals for months so my children can eat.”
INSIGHT:
“Aldi, Lidl, Home bargains, B&M - all cheaper than the big supermarkets”
Discussion over the cost of doing a ‘big shop’ in the supermarket, and particularly over switching supermarket chains to save money, increased by 73% from 2021. The majority mentioned switching to discounters such as Aldi and Lidl, with deals such as Lidl’s £1.50 ‘wonky’ fruit and veg boxes being highlighted as a way to eat healthily while reducing costs. However, some observed that price inflation meant that even the discount supermarket options were “getting expensive” and pointed out examples of ‘shrinkflation’, where goods were sold for the same price but in smaller portions.
“I still haven't had mine it's making my anxiety so bad”:
“I cannot wait to see how much I save doing my monthly shop here!”
“Will be swapping to them for sure”