Over a third of consumers are bracing themselves to pay more for groceries in 2022, states a new research by NielsenIQ.
According to a global consumer outlook study by NielsenIQ, about 37 percent of consumers are expecting to pay more for groceries this year, as retailers across the country have confirmed as ingredient costs go up for them, they have no choice but to pass this on to the customer.
The study also found that 41 per cent of people claimed to have experienced job or income loss as a result of Covid-19, and the same percentage of people saw themselves spending less on out of home dining.
Out of home entertainment was also viewed as less of a priority for 37 percent of consumers and 21 percent of people said they would pay more for home delivery.
Overall, 85 percent of UK consumers claim to have reevaluated their priorities since before the pandemic.
Covid-19’s impact goes well beyond a health pandemic and has caused economic disruption for multiple UK households. According to NielsenIQ, only 8 percent of Brits said they were able to save money and now feel more financially secure.
With this in mind, UK consumers are preparing for more future uncertainties in 2022, with nearly half planning for the future and saving for unforeseen circumstances (47 percent). 46 percent of UK consumers also stated inflation and cost of living as their top concerns in January 2022 – up from 33 percent in November 2021.
In terms of where UK consumers expect to be spending more in 2022, utilities, such as electricity, gas and phone bills (47 percent) was the top result for many Brits, followed by groceries (37 percent).
Over half (56 percent) of UK consumers believe that COVID-19 impacts, such as infections and restrictions, will still continue to 2023 and beyond.
With this in mind, NielsenIQ data reveals that health and wellness remains the primary concern for UK consumers in 2022. 55 percent of Brits believe their physical health will be more important to them over the next 12 months, followed by mental health (53 percent) and stress management (49 percent).
Moreover, almost half (48.9 percent) of consumers surveyed highlighted that sustainability and environmental practises would be more important to them in 2022.
Rachel White, managing director, NielsenIQ UK and Ireland, said, “When you dig deeper into what those priorities are and how it will change purchasing behaviour, you quickly conclude that our COVID-19 experiences are influencing what’s important. Factors like mental health, physical health, and managing stress are at the top of the list because these are the areas that COVID-19 has put pressure on.”
White continues: “The last two years have seen an increased level of uncertainty and it is not surprising that in this current economic climate consumers are concerned about the cost of living. Priorities are changing and whilst a meal out, takeaway or holiday may have once been a straightforward decision for some, consumers will be looking to prioritise and balance what is necessary versus what is nice to have. The ability to meet these new consumer needs will be key for manufacturers and retailers in 2022.”
