Food Engineering logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Food Engineering logo
  • NEWS
    • Latest Headlines
    • Manufacturing News
    • People & Industry News
    • Plant Openings
    • Recalls
    • Regulatory Watch
    • Supplier News
  • PRODUCTS
    • New Plant Products
    • New Retail Products
  • TOPICS
    • Alternative Protein
    • Automation
    • Cannabis
    • Cleaning | Sanitation
    • Fabulous Food Plants
    • Food Safety
    • Maintenance Strategies
    • OEE
    • Packaging
    • Sustainability
    • More
  • EXCLUSIVES
    • Plant Construction Survey
    • Plant of the Year
    • Sustainable Plant of the Year
    • State of Food Manufacturing
    • Top 100 Food & Beverage Companies
  • MEDIA
    • Podcasts
    • Videos
    • Webinars
    • White Papers
  • FOOD MASTER
  • EVENTS
    • Food Automation & Manufacturing Symposium and Expo
    • Industry Events
  • RESOURCES
    • eNewsletter
    • Custom Content & Marketing Services
    • FE Store
    • Government Links
    • Industry Associations
    • Market Research
    • Classified Ads
  • EMAGAZINE
    • eMagazine
    • Archive Issue
    • Advertise
  • SIGN UP!
Latest headlinesPeople & Industry News

Market Research

Report: Food Costs Causing Consumers to Continue Shifting At- and Away-from-Home Eating and Spending Behaviors

Consumer Food Spending Behavior
Photo by Atoms on Unsplash
March 31, 2023

Last year, food inflation at retail and foodservice exceeded levels reached during the Great Recession. Even with inflation currently moderating, higher food prices will continue influencing consumers' spending and eating behaviors this year, reports Circana, formerly IRI and The NPD Group. Food will always be consumers' priority in tough and good economic times, whether eaten at or away from home, according to Circana food and beverage and foodservice industry analysts speaking at the company's Growth Summit, held in Las Vegas, March 20-22. When faced with higher prices, consumers will use multiple tactics to reduce or reallocate at- and away-from-home food spending, like trading down to private label, buying in bulk, using more leftovers or choosing a quick service restaurant over a full service restaurant. 

Of the $2.9 trillion in consumer retail spending Circana tracks, food and foodservice spending represents the largest share, nearly $1.5 trillion. Food inflation for the 12 months ending February 2023 was 10.2% at home and 8.4% away from home. Although the rate of away-from-home inflation isn't as high as at home, foodservice costs are more than four times those of at-home eating occasions, with the absolute dollar gap widening. Higher food costs have had an impact on discretionary spending. David Portalatin, Circana food and foodservice industry advisor, says some of the declines in discretionary retail spending last year were due to the need to fund higher spending on food and beverage.  

At- and away-from-home food and beverage sales grew 8% in 2022, exceeding historical norms. At-home food spending remains a larger portion of the food and beverage sales, 61%, which corresponds with the 86% of annual eating occasions sourced from grocers and other retail outlets, says Cara Loeys, principal, of CPG client engagement at Circana. Retail (at home) food and beverage sales were up 9% and reached $931 billion in the 52 weeks ending December, and direct consumer foodservice spending was up 6% with $606 billion in sales. With higher food costs and a return to many pre-pandemic routines, consumers have shifted their eating and spending behaviors. 

"One of the behaviors consumers have historically used to manage higher food costs is trading down," says Loeys. "Consumers gravitate to larger pack sizes in the grocery store for a lower price per volume. They've also traded from premium to mainstay and value brands to get as much as possible without spending more. These behaviors are a correction from the pandemic when consumers, flushed with cash, purchased premium grocery items."

However, consumers are likely to get "frugal fatigue" and start to acclimate to the current pricing situation, indicating there is no need to race to the bottom of the price ladder. While 2022 was about value pricing to manage budgets, Portalatin explains that 2023 will be about the other attributes that play into value. 

"Price will always be important, but consumers define value differently. For example, consumers who visit a restaurant aren't necessarily looking for the cheapest meal," says Portalatin. "They're looking for the menu items they crave or foodservice outlets that offer quality and variety and enable them to treat themselves." 

Portalatin and Loeys expect consumers to manage high food costs in 2023 with the same behaviors they used last year, like trading down, shifting to value retail channels or from full service to fast casual restaurants. They advise to stay focused on consumer needs. A one-size-fits-all approach won't be practical with the various macroeconomic scenarios that may play out in 2023. Income, household composition, lifestyles, ethnic and generational propensities, etc., all impact consumer needs and wants. Targeted approaches in delivering convenience and value, innovation, and using digital to alter consumer interaction with brands are ways for food manufacturers, retailers and foodservice operators to win in 2023. 


KEYWORDS: consumer behavior consumer trends market research market trends

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Global Organic Food & Beverage Market to Grow

    Global Organic Food & Beverage Market to Grow

    With a CAGR of 12.07%, Bonafide Research estimates this...
    People & Industry News
  • skilled MEP worker

    Predicting Food and Beverage Manufacturing Trends for 2024

    The two words that should be kept in mind are labor and...
    Automation
    By: Derrick Teal
  • cleaning and sanitation

    The basics of cleaning and sanitation in food plants

    Sanitation maintains or restores a state of cleanliness...
    Cleaning | Sanitation
    By: Richard F. Stier
Subscribe For Free!
  • eMagazine
  • eNewsletter
  • Online Registration
  • Manage My Preferences
  • Customer Service

More Videos

Popular Stories

Conagra Logo

Conagra Brands to Sell Chef Boyardee Brand to Hometown Food Company

Salt

FDA to Amend Standards of Identity to Include Salt Substitutes

Vilter IHP in plant

Industrial Heat Pumps: Sustainable Energy Solutions for Now and the Future

CHECK OUT OUR NEW ESSENTIAL TOPICS

Alternative ProteinAutomationCleaning/SanitationFabulous Food Plants

Food SafetyMaintenance StrategiesOEE

PackagingSustainability

Events

June 5, 2025

Mass Customization Driving Innovation in the Food and Beverage Industry

The food and beverage industry is at the nexus of transformative global manufacturing trends, driving a shift toward personalized, customer-centric solutions. 

June 5, 2025

How Cafe Spice Uses Automation to Propel Private Label

Learn about Cafe Spice’s new, state-of-the-art, highly automated manufacturing facility in Beacon, New York. 

View All Submit An Event

Products

Recent Advances in Ready-to-Eat Food Technology

Recent Advances in Ready-to-Eat Food Technology

See More Products

Plant of the Year

Related Articles

  • The best diets of 2015

    Consumers shifting from traditional dieting tactics

    See More
  • New US Dietary Guidelines out for public comment

    Study: Children eating healthier, throwing less food away

    See More
  • cristiano-pinto-2lWGQ02DGL8-unsplash_1170x658.jpg

    Consumers Buy More Frozen Food in a Bid to Cut Costs

    See More

Related Products

See More Products
  • Functionalized_Carbohydrate.gif

    Functionalizing Carbohydrates for Food Applications

See More Products

Events

View AllSubmit An Event
  • June 5, 2025

    How Cafe Spice Uses Automation to Propel Private Label

    Learn about Cafe Spice’s new, state-of-the-art, highly automated manufacturing facility in Beacon, New York. 
View AllSubmit An Event
×

Elevate your expertise in food engineering with unparalleled insights and connections.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Food Master
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing