Holiday meals on a budget: Insights into Americans' spending habits
Inflation continues to shape consumer behavior, particularly during the holiday season when spending typically peaks. Recognizing the growing need for cost-effective solutions, Walmart has introduced an inflation-free holiday meal offer for the 2024 season, priced even lower than last year’s. In this piece, data from YouGov Profiles highlights how Americans are adjusting their food spending.
When faced with budget pressures due to rising cost of living, 23% of consumers report that they would first cut back on groceries. An even larger share, 25%, would reduce spending on takeout, and 61% would cut back on dining out.
Cutbacks on eating out are consistent across income levels, with 61% of lower-income, 65% of middle-income, and 60% of higher-income consumers indicating this as their go-to reduction. Takeout reductions show slight variations: 24% of lower-income, 28% of middle-income, and 25% of higher-income groups report cutting back.
However, when it comes to groceries, income disparities become more pronounced. Consumers in lower-income brackets are significantly more likely to cut grocery spending first (27%) compared to 16% of higher-income households.
Cost tops consumer concerns
When choosing what to eat at home or while dining out, cost emerges as the primary concern for most Americans. More than half of consumers (54%) prioritize cost over other considerations. This sentiment is particularly strong among lower-income (56%) and middle-income (56%) groups.
Higher-income consumers, however, focus more on factors such as health content (58%), time to prepare (54%), and convenience (53%) when deciding what to eat. For these consumers, cost is a less commonly cited consideration, with 46% identifying it as a primary factor.
Americans seek the lowest prices while shopping and stick to a strict budget
Price sensitivity extends beyond meal planning to grocery shopping habits. Three-quarters of consumers (75%) say they look for the lowest prices when shopping. This sentiment is strongest among lower-income consumers, where 81% prioritize low prices. Among middle-income groups, 73% agree with the statement, while 64% of higher-income households also emphasize finding the best deals.
A stark difference emerges when examining adherence to strict shopping budgets. Overall, 52% of Americans say they stick to a budget while shopping, but this figure varies significantly by income. Among lower-income consumers, 62% report sticking to a strict budget, compared to 46% of middle-income and just 34% of higher-income individuals. Conversely, 56% of higher-income consumers disagree, suggesting more flexibility in spending.
Preferences for basic vs. luxury goods
Consumers show a range of preferences when it comes to spending on food and groceries. While 17% of Americans prefer to pay lower prices for basic goods, 16% are willing to pay more for luxury options. The majority fall somewhere between these extremes, reflecting a diverse set of priorities when balancing cost and quality in food purchases.
Methodology: YouGov Profiles is based on continuously collected data and rolling surveys, rather than from a single limited questionnaire. Profiles data for the United States is nationally representative of the population and weighted by age, gender, education, region, and race. Learn more about Profiles.
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