Inflation? Tariffs? Shortages? Fuhgeddaboudit; summer is near and it’s time to party!
FMI reports that though consumers have concerns about grocery prices, product availability and the economy in general, they still plan to celebrate this summer.
FMI’s U.S. Grocery Shopper Sentiment webpage shows 73% of consumers are concerned about grocery prices and 55% are concerned about the availability of certain items. Yet, 80% say they plan on celebrating in the coming month, 65% with friends and family.
“When budgets are tight, people want to continue to find ways to celebrate, especially through food,” Deidre Popovich, associate professor of marketing at Texas Tech University, told FI.
“People are unlikely to cancel their gatherings, but they may find ways to adapt their get-togethers by spending less.”
Popovich said consumers might move toward private-label brands or host potlucks or turn to old style comfort foods like chips and hot dogs.
“When there is economic uncertainty, familiar food creates a sense of stability and comfort. Indulgent foods make people feel that things are still okay, even while they’re cutting back on their budgets,” Popovich said.
On Wednesday, Walmart’s chief financial officer, John David Rainey, provided an ominous statement for consumers, when he noted that price hikes due to tariffs could start later this month. However, many experts feel consumers remain steadfast in their belief that summer is a time to celebrate.
Bob Vergidis, a top executive with pointofsale.cloud, said consumers will simply celebrate smarter.
“Affordable luxuries tend to shine during times of rising costs, offering a sense of escape or reward. Think cookies, donuts or interesting drinks – especially those with a ‘healthy’ edge, like boba,” he noted. “These items feel festive without breaking the bank.”
“When people feel economic pressure, they don’t stop celebrating, they just become more intentional about where and how they spend.”
Vergidis said one way to keep costs in check is to buy locally grown, in-season produce, which consumers see as fresher and a better value.
It’s a matter of joy.
“Even as grocery prices rise, and 36% of Americans reported increasing their spend on food and groceries in the past month, consumers aren’t giving up on joy. Instead, they’re redefining indulgence with an eye toward value and the emotional return it can give them,” said Jack Mackinnon, senior director of cultural insight at Collage.
“Nearly half of American consumers say food comforts them and helps them relax. Younger and multicultural consumers are especially eager to be adventurous and creative with food, blending cultural roots with fun, bold flavors.”
Still, some staples are likely to remain in the spotlight.
A Pre Brands survey found 81% of respondents said grilling a steak feels special, with 75% saying they’re willing to splurge at the expense of other parts of a meal.
