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Survey: High Gas Prices Forcing Many to Limit Grocery Spending

Rising prices at the pump are creating headaches for many Americans. That was a key takeaway from a survey released this morning by Snipp Interactive, which found that nearly six in 10 shoppers – particularly regular grocery shoppers – have been impacted by rising gas prices.

According to AAA, a gallon of regular gas cost an average of $3.99 in the U.S, as of Monday. The national average for a gallon of gas has risen slightly more than a full dollar since late February.

The Snipp report revealed that higher gas prices are doing more than draining wallets at the pump. They’re altering how Americans shop, spend, and plan.

“What stood out the most in this research is just how deeply rising gas prices are reshaping everyday consumer behavior,” Snipp CRO Chris Cubba told The Food Institute. “What’s most surprising is that spending pullbacks are not just confined to discretionary goods and are now extending into essential goods, as well. While snacks, alcohol, and prepared foods are expected to face the sharpest cuts, pressure is also cascading into produce and dairy.”

“The sharp rise in U.S. fuel prices,” the report concluded, “is reverberating well beyond the gas pump.”

Earlier this month, Snipp surveyed 1,000 American grocery shoppers, gauging the behavioral consequences of rising fuel costs. The findings show that, as household budgets come under pressure, grocery shoppers are making noteworthy adjustments in how much they spend.

Nearly 12% of survey respondents said that recent gas-price increases have “extremely” impacted their household budget, while 19.4% gave an answer of “significantly.” As a result, Snipp determined that tiered value is essential in the months ahead.

“Nearly six in 10 shoppers feel fuel prices to some degree,” the Snipp report noted. “One-size-fits-all promotional strategies will underperform in this environment.”

There were a few other eye-opening findings from the report, such as:

  • 6% of consumers said they’re dining out less these days
  • 5% have delayed a major purchase due to higher fuel costs
  • 6% said their weekly grocery spending has “decreased somewhat”

“The squeeze is real,” Snipp wrote. “Over two in three shoppers have adjusted spending patterns. This signals an urgent need to anchor promotional strategy in everyday essentials and to activate loyalty mechanisms that retain wallet share.”

“Shoppers arriving at the store are financially stretched elsewhere, reinforcing the urgency of value positioning, promotions, and loyalty investment.”

Some 35.8% of consumers indicated they’re trading down and/or buying less at grocers in 2026. Somewhat surprisingly, the top category that consumers are spending less on is “snacks and beverages” (51.7%), followed by alcohol (38.1%) and prepared deli items (32.9%).

As prices at the pump rise, more than a quarter (26.1%) of American adults are shopping at retailers “closer to home.”

Roughly 40% of shoppers are actively switching to private label products, which creates an opportunity for retailers to expand their store-brand assortments.

Americans don’t envision prices dropping anytime soon, either. Nearly half (46%) of survey respondents are very or extremely concerned about continued grocery cost increases over the next six months.

The survey delivers a clear sign, according to Snipp: rising fuel prices are a material force reshaping how Americans shop for groceries. And the behavioral changes seem unlikely to reverse in the near-term.

“These findings underscore the need for brands to prioritize awareness, value, and timely offers to protect share, reinforcing the importance of targeted, value-driven marketing in a prolonged cost-conscious environment,” Cubba told FI.


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