Weathering nearly three years of the COVID-19 pandemic, consumers are looking toward the 2022 holiday season with new habits, rituals and expectations for winter celebrations ahead, finds a new report from FMI — The Food Industry Association.
The final report, in a six-part series on U.S. grocery shopping trends in 2022 that includes analysis from The Hartman Group, the “U.S. Grocery Shopping Trends 2022: Holiday Shopping” report reflects an online study of a nationally representative sample of 1,718 adults from Oct. 1-6, 2022.
This year, typical holiday stress is expected to be aggravated by inflationary concerns, with 62% of shoppers reporting grocery costs have increased year-over-year. Despite inflation-induced worries, average weekly household grocery spending is currently at $148 per week, down from the $161 peak during the height of the COVID-19 pandemic, according to the report.
Photo courtesy of FMI
Finding budget-friendly holiday meals is top of mind, with 71% of consumers reporting that they plan to make some adjustment to their holiday meal shopping to adapt to the changing economic landscape. Inflation aside, far fewer shoppers this year believe COVID-19 will impact their holiday plans, with more than two-thirds of shoppers saying they will have about the same holiday plans as last year.
“Food is the centerpiece for so many of our holiday gatherings. Despite inflationary pressures, consumers are determined to enjoy the festivities this year as they normally do,” Leslie Sarasin, president and CEO of FMI said in a news release. “The food industry is working tirelessly to keep costs down and to ensure that our timeless traditions can continue during this holiday season.”
Navigating fresh produce sticker shock and out-of-stocks
Increased costs were an unfortunate reality observed by more than 50% of shoppers. Among the price hikes, fresh produce rising costs were ranked among the most noticed by consumers, along with fresh meats, refrigerated dairy foods and milk, according to the report.
Top strategies cited by consumers to lessen basket totals included hunting for deals, choosing store brands and enjoying more home-cooked meals. Despite awareness of price increases, American shoppers maintain their level of food purchases, even if it means spending more, said the report.
While out-of-stock product concerns have remained steady from August to October 2022, fresh produce still ranks at the top of the list of items shoppers have observed being out-of-stock, coming in at No. 4, behind paper and cleaning products, frozen food and refrigerated dairy.
Overall, progress made by food retailers and suppliers to curb widespread supply chain issues has kept consumer confidence up heading into the holidays. Only 27% of consumers report being “very concerned” about food items needed for holiday meals being out of stock, according to the report.
Slowing online grocery spending
As in-person shopping concerns continue to trend downward, with 75% of American shoppers reporting they feel safe shopping in person at food stores, online shopping as a primary way of buying groceries has waned in recent months.
According to the report, while two-third of American shoppers continue to shop online occasionally, heavy use has cut back, with only 12% of consumers saying they shop online for every grocery purchase. Millennials continue to be the most likely to shop for groceries online, with 84% reporting at least occasional use. By comparison, only 70% of Gen X and 39% of boomer shoppers report doing their grocery shopping online at least occasionally.