Are food buying habits changing across Europe?

Are food buying habits changing across Europe?

Klaus Grunert discusses to New Food why customers may be “reshuffling” their purchases to deal with food inflation and possible shortages in an attempt to address food price hikes themselves.

purchasing list
How are people in Europe changing their buying habits to deal with price rises, given that the European Union’s (EU) food inflation rate peaked in October 2022 at 17.26%?

A study found that 53% of consumers in Europe are “strongly worried” about food shortages and have adjusted their expenditure to account for rising food prices.

Among the major shifts noted in the report were consumers purchasing fewer items or changing brands, as well as making more deliberate food selections.

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“The fragility of our food system has been brought to light by the ongoing Russian war against Ukraine,” stated Dr. Andy Zynga, CEO of EIT Food.

“In order to address supply chain issues and make sure that we are producing enough affordable, nutritious food for everyone, we urgently need to scale and support innovation; however, we must do so sustainably, fairly, and efficiently.”

In response to the findings of the study “Changes in food behavior in times of crisis,” Klaus Grunert, a professor in the Aarhus University Department of Management, explained to New Food that “people are reacting by reshuffling” their methods of food buying.

What motivated the researcher to do this study?

Klaus Grunert (KG): Disruptive events that have affected consumer behavior are currently occurring. In addition to the COVID-19 epidemic, we currently have to deal with the conflict in Ukraine and growing energy costs.

Price increases and their impact on food-related consumer behavior are of interest to researchers. Other factors that most people think account for changes in consumer behavior include sustainability and climate change, which is why we are particularly interested in them.

Were the study’s findings unexpected or predicted?

KG: A few things weren’t shocking. When prices rise, consumers adjust part of their demand, purchase alternatives, and become more price conscious overall.

A few of the patterns that emerged in response to COVID-19 two years ago are still evident. For instance, two years ago we discovered that people enjoyed dining with their families more, spent more time in the kitchen, and were more creative when it came to home cooking. That made sense, since the lockdowns had left individuals confined to their homes.

Given that people could now eat out again, it wasn’t obvious that they would still want to prepare meals at home for their families. Nonetheless, in comparison to pre-COVID 19, we discovered that it has somewhat, but not significantly, retreated.

family-style cuisine
Grunert claims that during the COVID-19 pandemic, home cooking became more inventive.

Compared to two years ago, there is now greater consideration. Customers read labels more frequently, compare items more frequently, and make less impulsive purchases. When it comes to food prices, they are under pressure. While some may have thought that they would have to stop considering factors like sustainability and health, this doesn’t seem to have happened, and in fact, the market for these items may have grown.

Do you believe that the pandemic will have a detrimental effect on the hospitality industry since more people will be eating at home?

 

KG: Based on my estimation, there will likely be a rebound effect, similar to what happens in the travel business. Due to unfulfilled expectations, people have started dining out again, which caught several providers off guard. It seems to me that the return business from customers who were compelled to eat at home for a while is good for the hospitality sector.

In what way have customers responded to the possibility of food shortages?
KG: We conducted a survey to find out if people are worried that the conflict in Ukraine could cause food shortages, and the answers were expected. Grain shortages and experts’ concerns about grain have been the subject of a great deal of media coverage. Of fact, anecdotal evidence suggests that certain items may have been scarce for some individuals as well.

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Although the data indicates that individuals are worried, we are unsure of the precise degree to which food shortages have actually affected them. People have reported that they have been more frugal with their food purchases and have started shopping elsewhere after being faced with price rises.

I predict that in order to deal with the pressures they face, people will subsidize some of the commodities they use, which will subsequently affect the kinds of meals they eat.

Do you believe that consumers will begin to substitute less popular items, like dairy and red meat, for more affordable options?

KG: In agreement. It’s noteworthy because it corresponds with another trend that emerged about two years prior: a rise in vegetable consumption. A lot of individuals are also discussing with customers switching to a plant-based diet, but they are unsure of how popular this trend will be in the next year or so.

Grunert forecasts a rise in consumer interest in veggies on the market.

Why is it that businesses in the modern world must manufacture sustainable goods?

KG: Up until now, environmentally friendly solutions have been specialty items catering to a certain market that is willing to pay a premium for them. But in order to provide a range of options that embrace features of sustainability, we do need to see sustainability correlating with popular products.

Since not all areas of sustainability require a significant increase in cost, businesses must create sustainable products that appeal to the mass market.

What changes do you anticipate in consumer concerns about food shortages in the upcoming year?

KG: It depends on what happens. Europe has been seeing declining inflation at the moment. Right now, there are no significant food shortages. As a result, worries might be waning and people might begin to make decisions about eating that are in line with their fundamental requirements and objectives.

Naturally, this will alter if there are any disruptions to the food supply system in 2023. There are two main categories of responses that people have in times of crisis. First, there are patterns that are becoming more pronounced and will continue, and second, there are particular reactions to the crisis that cause people to stray from “normal behavior,” but these tend to come back around after a year or two.

Do you believe that regulatory agencies throughout Europe ought to make it clear to the public that there are now no relevant food shortages?

KG: Definitely, yes. That seems like a crucial first step. In my opinion, having some official information would be quite beneficial for the peace of mind of consumers.