Cost-of-living crisis to impact grocery spending habits during Ramadan

Ramadan and Eid preparations in the UK this year is set to be very different as a new  research has highlighted how ongoing cost-of-living crisis is expected to dampen the celebrations.

According to Nano Interactive which surveyed Muslims in the UK to understand how their spending habits around Ramadan may be changing this year, about 48 per cent of UK Muslims say that the cost-of-living crisis has already impacted their Ramadan/Eid preparations.

Grocery shopping habits will be one of the biggest changes for many this year. 34 per cent have chosen to save on groceries this year to combat rising living costs while over 40 per cent turn to budget friendly grocery stores such as Lidl (44 per cent) or Aldi (46 per cent) when preparing for Ramadan and Eid.

Despite many consumers reducing their spending, the research also reveals there is a huge opportunity for brands that engage in the right way with their audience this year. 44 per cent of UK Muslims would describe themselves as brand loyalists, typically purchasing brands they know and love while 24 per cent say they’re open to trying new brands and products when buying Ramadan/Eid groceries.

About 31 per cent say that they spend time looking for best deals before purchasing in order to get the best value for money.

Shedding a light on which aspects Muslims will be cutting back, the report states that 41 per cent say they’re more likely to eat out less for Iftar- the evening meal that signifies the end of the daily fast.

While 42 per cent expect to spend less than £30 per person on Eid gifts, 61 per cent say this is much less than what they spent last year.

Artiom Enkov, head of insights & analytics at Nano Interactive, says: “Ramadan and Eid are hugely important moments for nearly four million people across the UK, but with spending habits set to change again this year, it’s important for advertisers to be sensitive to consumers with reduced budgets and evaluate the true intent behind the context.

“For instance, if people are reading articles online around ‘Ramadan recipes on a budget’, brands can work to tailor their creative in this context by highlighting relevant deals. By combining data points about the content people are reading and using an extra layer of evaluation around intent and context, brands and advertisers can make sure they’re delivering effective ads that reach the right audience, with the right message at the right time.”