A recent international survey highlights that rising grocery prices continue to be a significant concern for consumers worldwide. According to Blue Yonder’s 2025 Global Consumer Sentiment on Grocery Inflation Survey, 85% of consumers in the United States, Europe, Australia, and the Middle East are worried about the ongoing effects of inflation on food costs.
Nearly half of the respondents (49%) identified newly implemented global tariffs as the primary reason for higher grocery bills. Other key factors contributing to increased prices include rising raw material costs (42%), higher labor expenses in manufacturing and food processing (39%), and increased profit margins among food brands and manufacturers (33%).
To cope with these higher prices, nearly two-thirds (65%) of those surveyed stated they plan to buy fewer grocery items overall. Many are also adopting cost-saving strategies:
– 42% intend to shop more frequently at discount or wholesale stores
– 36% will pay more attention to promotions and discounts
– 34% are switching to private-label or store brands
Consumers are also reassessing their spending in other areas to offset food costs. In Australia and New Zealand, 67% of respondents plan to cut spending on clothing and footwear, followed closely by 62% of shoppers in the U.S. and 61% in the U.K. Similar trends are observed in France (49%), Germany (49%), and the Middle East (47%).
The second most likely category for spending cuts varies by region:
– In Australia/New Zealand and the U.K., entertainment subscriptions such as streaming and gaming services were the primary targets (60% and 54%, respectively).
– German, French, and Middle Eastern consumers were more inclined to reduce spending on electronics.
– In the U.S., there was an equal focus on cutting spending for both subscriptions and consumer electronics (54%).
Only 7% of all respondents indicated they would not reduce spending in other areas to manage rising grocery costs.
Generational differences also emerged; Baby Boomers were the most likely to cut back on clothing and footwear purchases (63%), followed by Gen X (59%), Gen Z (53%), and Millennials (50%).
“The findings of this survey underscore just how widespread and deeply felt the impact of inflation is on consumers’ everyday lives,” said Ben Wynkoop, senior director at Blue Yonder. “From buying fewer grocery items to adjusting spending habits across other retail categories, consumers are navigating prolonged economic uncertainty – and retailers must respond accordingly.”
The survey, conducted in May 2025, included over 6,000 consumers across seven global regions.
Overall, the most common categories consumers plan to reduce spending on include:
- Consumer electronics (46%)
- Streaming and gaming subscriptions (43%)
- Personal care and beauty products (36%)
- Appliances (33%)
- Alcohol (33%)
- Automotive purchases (28%)
