Key Summary
- Most consumers worry about grocery inflation, mainly blaming tariffs.
- Many are cutting back, switching to discounters and private labels.
- Views on inflation causes vary by region and age group.
Most consumer in the world are concerned about inflation’s impact on grocery prices, illustrating consumer unease and clear changes in purchasing decisions globally, shows a recent report, sugg
According to Blue Yonder's recently released 2025 Global Consumer Sentiment on Grocery Inflation Survey, 85 per cent of overall respondents are concerned about inflation’s impact on grocery prices, illustrating consumer unease and clear changes in purchasing decisions across the world.
Nearly half (49 per cent) of all respondents believe newly introduced global tariffs are the leading factor behind inflated grocery prices, followed by increased costs for raw materials (42 per cent), increased labour costs in manufacturing and food processing (39 per cent), and increased profit margins for brands and manufacturers (33 per cent).
The perceived top factor driving inflated grocery prices differs across regions.
Consumers in the US.(65 per cent), the UK (56 per cent) and the Middle East (50 per cent) feel global tariffs are the leading cause of rising prices.
Consumers in ANZ (50 per cent) feel that increased profit margins for brands and manufacturers is the top factor for inflated prices, while consumers in France (48 per cent) and Germany (47 per cent) believe the increased cost of raw materials is the leading cause of grocery inflation.
There is a generational divide, too. Baby Boomers uniquely believe that increased labour costs in manufacturing and food processing are the leading cause for grocery inflation (52 per cent), whereas all other generational groups believe global tariffs are the top cause of inflated prices.
Inflation’s grip on grocery bills is triggering global concern from consumers.
Almost two-thirds of consumers (65 per cent) report they would buy fewer grocery items across categories to cope with price increases, while 42 per cent would shop at discount and wholesale stores.
In addition, approximately one-third would prefer shopping based on promotions and discounts (36 per cent) and switching to private label brands (34 per cent).
Alcohol is facing the biggest budget cuts compared to other grocery categories, with one-third (33 per cent) of consumers saying they would reduce alcohol purchases in response to inflation price increases.
“The findings of this survey underscore just how widespread and deeply felt the impact of inflation is on consumers’ everyday lives,” said Ben Wynkoop, senior director, Global Industry Strategist, Grocery and Convenience, Blue Yonder.
“From buying fewer grocery items and cutting back on alcohol purchases to shopping at discount retailers and reprioritising spending across other categories, consumers are navigating prolonged uncertainty — and retailers must adapt accordingly.
“In today’s global market, tariffs are significantly impacting grocery supply chains, resulting in inventory and logistics challenges, as well as increased costs for both retailers and consumers.
“Leveraging advanced technology for AI- and ML-driven scenario planning and visibility across the end-to-end supply chain can help grocers mitigate tariff-related disruptions by increasing agility, resilience and cost savings.”