CHICAGO, Ill. (RFD NEWS) — Inflation continues to reshape consumer grocery shopping habits, creating ripple effects throughout the U.S. food supply chain as retailers and manufacturers adjust to changing demand.
CoBank Senior Food & Beverage Economist Billy Roberts joined us on Friday’s Market Day Report to discuss how inflation is influencing food purchases and what the changes could mean going forward.
In his interview with RFD News, Roberts said while food inflation has slowed compared to recent years, prices remain significantly higher than they were several years ago. He noted the food price index was up about 2.7 percent year-over-year in May, but has increased nearly 26 percent over the past five years, putting continued pressure on household budgets.
As a result, Roberts said consumers are making meaningful changes to their shopping habits. Many are purchasing more private-label or store-brand products, shopping at discount retailers, and buying fewer groceries overall. He added that about one-third of consumers report purchasing fewer groceries over the past year, while roughly three out of four shoppers say higher prices have changed their buying behavior.
Retailers and food manufacturers are responding by offering more promotions, discounts, and value-focused pricing strategies to maintain customer traffic. Roberts said manufacturers are also working to manage costs through pricing adjustments, packaging changes, and productivity improvements.
Looking ahead, Roberts expects food prices to remain elevated, with food-at-home inflation projected to continue rising over the next several years. He said many of the consumer shopping habits that have emerged during the recent period of inflation—including increased purchases of private-label products and shopping at discount stores—are likely to persist even as inflation moderates.
