The last few years have been characterised by cutbacks, but with UK inflation hitting its lowest level since 2021 in February, consumer behaviour is changing. Consumer research has been tracking food and beverage shopping and spending habits for five years and has noted a distinct decline in consumer cost-cutting as we close out 2024.
The data shows that Brits aren’t shopping around to the same degree they were a year ago. Own-brand benefited hugely from the cost-of-living crisis. In 2022 – when UK food and drink prices rose at the fastest rate since 1977 – more than half of consumers said they had increased their purchasing in the category. But the most recent data shows Brits are becoming less likely to purchase own-label products.
Baskets are changing – the economising that took place due to the high cost of living not only extended to buying cheaper brands; it influenced the very diet of the British consumer. From buying cheaper cuts of meat, to forgoing meat altogether. The flexitarian diet – where people eat a minimal amount of meat – has declined in popularity by 8% since its peak (to 16%). It could be that some people had adopted these diets as an austerity measure.
Food provenance is becoming important again – when inflation was at its highest, where food came from and how sustainable it was, became far less important to consumers than how much it cost. As a result, the percentage of Brits buying locally produced food and drink, or buying from environmentally friendly brands plunged. Today, we’re starting to see those trends recover. Buying locally produced products has increased by 10% and is something that 41% of consumers actively try to do. Buying in-season produce is also trending; 42% of shoppers endeavour to buy food that has not been imported from distant locations with different climates. Brands can also expect to see increased consumer interest in ingredients and food additives in 2025. Awareness of ultra-processed foods (UPFs) is growing. Sugar content also remains a hot topic, with half of shoppers striving to reduce their consumption.
2025 – a year for growth – as the year comes to an end, the outlook for 2025 appears optimistic. Providing the economy remains stable, consumer trends data suggests next year could be a period of growth for F&B brands. However, carrying out research to understand target consumers at this time of change will be crucial to maximising the opportunities.