Consumers in a food cost crisis

Key findings

• 85% of consumers are trying to save money on food as a result of the cost of living crisis
• This rises to virtually all (99%) of those finding their finances difficult
• Half (50%) of those struggling financially report skipping meals.
• 46% of all consumers, and 78% of those struggling the most financially, say they are finding it harder to eat healthily now, as a result of the cost of living crisis

Food and the cost of living

In May 2022, Justin King - former CEO of Sainburys - told BBC’s Today programme that the “golden era” of cheap food was coming to an end. We will have to adjust to a long-term future where food eats more of our wages than it has done in our recent past. 

The latest data from the ONS show that the cost of food was 14.6% higher in September 2022 than at the same time 12 months before, the highest since 1980, and up from 13.1% in August. We do not currently know if food inflation has peaked or not but even if it has, food inflation today is nevertheless historically high.

To find out how consumers were coping with the cost of living crisis Which? conducted a representative survey of UK adults in August 2022 to ask them about their food shopping and how this may have changed due to rising costs. We found consumers are already significantly changing how they shop for their food.

You can access our complete library of data to understand the challenges facing consumers from our consumer data hub.

The cost of living crisis is driving over 8 in 10 adults to try to save money on their food bill

85% of UK adults report they are trying to save money on food. Most commonly consumers were “looking out for items on promotion” or “buying cheaper products”. Approximately half of people said they were doing these two things to save money. Only 15% of people said they were doing nothing.

Virtually all of those struggling financially are trying to save money on food

99% of those struggling the most financially say they are trying to save money on food. This makes sense as we know that inflation hits the poorest hardest. The Joseph Rowntree Foundation shows that the poorest one fifth of British households spent 15% of their income on food in 2020, almost double that of the richest one fifth, at just 8%. 

In our survey only 2% of those finding their finances “very difficult” and 1% of those finding their finances “quite difficult” say they are not doing anything to save money on food.

Half of consumers struggling the most financially say their household is skipping meals to save money on food

Whether people are finding their finances difficult or living comfortably, adults of all levels of financial security are prioritising the same behaviours in broadly the same order, when trying to save money on food. For instance, everyone is more likely to be looking out for items on promotion (55% of consumers report doing this) than they are to be reducing food waste (39%). But those finding their finances difficult are much more likely to be doing all of the behaviours we asked about.

Most worryingly, half (50%) of those finding their finances “very difficult” say their household is skipping meals to save money on food. This is significantly higher than 1% of those "living comfortably" or 10% of those "just about getting by” who say they are skipping meals.

The rising cost of living is making it harder for many to eat healthily

When we asked consumers what effect the cost of living crisis was having on what they eat, we found that around half of consumers (46%) said they are finding it harder to eat healthily now, compared to before the crisis. Again, we found that those struggling the most financially were significantly more likely to say they are finding eating healthily more difficult.

Almost 4 in 5 (78%) of those struggling with their finances say that eating healthily has become more difficult now, compared to before the crisis. Whereas an equivalent 4 in 5 (79%) of those living comfortably say the crisis has made no difference to how healthily they eat.

What should supermarkets do to help?

In summary, we found clear evidence that consumers are already significantly changing their food shopping in response to the cost of living crisis and this is having an effect on consumers’ reported ability to eat healthily. 

It is also clear that those who are struggling with their finances are also the most affected by food inflation. They are much more likely to say they are trying to save money on food, including by skipping meals. They are also finding it much more difficult to eat healthily, compared to those who are comfortable with their finances.

To support consumers through the months ahead, Which? is calling on supermarkets to take action in three areas within their power:

1. Supermarkets should ensure that their pricing is clearer and more transparent, making unit pricing much more prominent, legible and consistent – and display it for promotional offers – so that people can easily work out what is the best deal.
2. Supermarkets should work to ensure a range of budget lines for affordable essential items are available across their stores, and particularly in locations where people most need support. 
3. Supermarkets should tailor their marketing budgets and promotions to support those who are struggling, including offers, vouchers and loyalty cards benefits focused on the places and households where people are most in need.

For more information on our calls to business, see our ‘agenda for business’. Which?’s calls to supermarkets were informed by the survey shown here.