According to experts from NielsenIQ who spoke at the National Grocers Association’s recent NGA Show 2023 in Las Vegas, although American consumers are “unsettled” by inflation, health, wellness and sustainability are still focuses for many.
Jamie Clarke, head of Retail, North America at NielsenIQ, and Sherry Frey, VP of Total Wellness at NielsenIQ, both shared their insights at the event’s keynote breakfast session on Feb. 27.
“One of the things that we’ve noticed is that even as we’re moving into this year, 39% of all U.S. consumers are very cautious about their economic outlook and their ability to spend,” said Clarke. “38% are actually struggling or rebounding… so if we think about that, that’s over 70% of our calculation that’s not in a good spot right now. And with inflation, they are all watching their spend. Really what they’re spending their money on is health. That is their focus.”
Clarke detailed that while inflation has led many consumers to cut costs, which has largely benefited private brands, consumers are looking for healthier alternatives, and purchasing more fresh produce, meat and more. According to NielsenIQ data, consumers are spending less on out-of-home dining and entertainment, as well as clothing, decor and more.
“They are really focusing on nourishing themselves and their families in their homes, and that’s where they are focusing their spend,” he said.