IRI® recently merged with the NPD Group has issued a review entitled Impact of Inflation on Consumer Behavior. The report notes that, food inflation attained 13.2 percent over the fourth quarter compared to the comparable period in 2021.  Trends noted in the report include:-

• Shoppers are resisting discretionary purchases and are concentrating on essentials.
• Inflation varies according to category, bakery was up 18 percent during the fourth quarter of 2022 versus 2021 with dairy 23 percent higher.  In contrast, fresh meat and seafood were only up by 3.5 percent.
• Shoppers are searching for value and convenience.
• Online ordering, dollar stores and club warehouses are benefitting at the expense of in-person shopping at mainstream brick-and-mortar stores  that grew same store sales by only 7 percent.  In January 2023, dollar stores grew by 14 percent and club stores by 12 percent.
•  Private label food items are displacing national brands.  This lower-priced category is now available as an alternative to 75 percent of all food and beverage offerings.
• Sales value will moderate in 2023 due to deflation in unit prices
• Consumers will continue to satisfy basic needs but will be willing to trial-purchase innovative products offering convenience and cost.