Consumers Eat More Meals at Home, Shop for Cheap Groceries, Use Restaurants Less to Offset Rising Costs, Report IRI and NPD | Company

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CHICAGO–(BUSINESS WIRE)–August 23, 2022–

While inflation is more moderate for food out of home (7.6% compared to a year ago*) compared to food at home (13.1% compared to a year ago*) , the typical out-of-home eating occasion still costs 3.4 times more than in-home food from retail. To offset rising food prices, consumers are looking for bargains when shopping, eating more meals at home and cutting back on restaurant visits, reports Information Resources, Inc. (IRI®) and The NDP group (NDP), who recently merged to create a leading global technology, analytics and data provider.

The nearly $1.5 trillion in-home and out-of-home food market is expected to grow approximately 8% in 2022, in-home food (8.7% sales growth vs. year) outpacing the out-of-home food market (6% vs. one a year ago), according to the inaugural joint research by IRI and the NPD. The research provides the first-ever comprehensive view of the Complete Food™ market, examining how consumers buy and consume food at home, use restaurants and food outlets, and uncover new insights into consumer trade-offs to save money. money and splurge in the current inflationary environment. environment. Research predicts that the whole foods market will grow by 3-5% in 2023.

Other key findings from the IRI-NPD research identify what is driving the changes, how opportunities at home are evolving, and the impact of rising inflation, including:

  • Hybrid and flexible work schedules allow up to 20 million American workers to work from home, which keeps the vast majority – 62.5% – of the food dollar based on home-based retail sales, while 37, 5% represents catering expenses.
  • Consumers are bargain-hunting, preferring mainstream and inexpensive brands over premium brands, choosing private label foods in certain categories, and occasionally buying high-end products as affordable luxuries.
  • Consumers are migrating to more food at home to offset rising costs, as indicated by the deceleration in foodservice traffic, down 3% in July. Even when dining out, consumers are turning to more advantageous dining outlets, such as quick service restaurants, as evidenced by the growth in average customer price relative to menu prices.
  • Market bifurcation is intensifying, with high-income households preferring premium products and low-income shoppers favoring mainstream and value products. More growth is driven by higher-income households, as lower-income households face more economic hardship.

“With inflation hitting 8.5% in July, it’s no surprise that consumers are opting for cheaper options and opting for more value, especially when dining out,” said Dr. Krishnakumar (KK) Davey, President of CPG and Retail Thought Leadership for IRI and NPD. “As the pandemic and recent inflationary pressures have altered demand, restaurants and food outlets delivering value, convenience and in-home enjoyment are a priority for consumers and will continue to grow.”

“Even with the impact of high grocery prices, eating out is still much more expensive than eating out,” said David Portalatin, Senior Vice President and Industry Advisor for Food and Restaurant for The NPD Group. “As we head into 2023, restaurant recovery will be slow and steady as traffic begins to return to pre-pandemic levels. Current demand suggests culinary trends are shifting to incorporate bolder flavors inspired by global and regional influences.

The inaugural joint IRI-NPD research merges IRI’s retail outlet data on what consumers buy and where they shop with NPD’s ongoing tracking of in-home and out-of-home eating behaviors.

* US Bureau of Labor Statistics, Consumer Price Index, July 2022

About the IRI and the NPD

IRI and NPD completed their merger in August 2022, creating a leading global technology, analytics and data provider. The merger brings together colleagues from around the world to provide more than 7,000 clients with a comprehensive and accurate view of consumer behavior, retail shopping and consumer trends across a range of industries. Together, IRI and NPD have deep industry knowledge, data assets, and strategic retail relationships across more than 20 industries, including CPG, softlines, hardlines, beauty, technology, food service, and consumer food. A unified name and brand for the combined company will be announced at a later date.

Show source version on businesswire.com:https://www.businesswire.com/news/home/20220823005734/en/

CONTACT: Media contacts:

Shelley Hughes

Shelley.Hughes@IRIworldwide.com

+1 312-731-1782 Kim McLynn

Kim.McLynn@npd.com

KEYWORD: ILLINOIS UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: OTHER CONSUMERS OTHER COMMUNICATIONS COMMUNICATIONS SUPERMARKET RESTAURANT/BAR FOOD/BEVERAGE LIFESTYLE COMMERCIAL CONSUMER

SOURCE: Information Resources, Inc. and the NPD Group

Copyright BusinessWire 2022.

PUBLISHED: 8/23/2022 1:17 PM / DISK: 8/23/2022 1:17 PM

http://www.businesswire.com/news/home/20220823005734/en

Copyright BusinessWire 2022.

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