A new study by Forbes Advisor has found that four-in-five (82%) British consumers have substituted some of their typical weekly grocery products for cheaper brands or supermarket own-label alternatives.
The price comparison and financial guidance platform surveyed 2,000 adults to discover how supermarket shopping behaviour has changed over the last six months. Of the four-in-five people switching their goods, more than half (58%) have changed the majority of their groceries to help their weekly budget stretch further. Meanwhile, two in five (42%) have been more selective about which supermarket goods they are changing, switching only occasional products in an effort to save money.
The study also asked shoppers of the major supermarket chains which own-label ranges they have turned to in the last six months. Tesco came out on top with almost two-in-five (38%) of those substituting their shopping for cheaper goods, claiming to be frequent purchasers of Tesco’s own-label groceries. This was followed by Sainsbury’s own-label(33%) and Asda’s Just Essentials (28%).
In further evidence of cutting back, the research found that more than three quarters (77%) of supermarket savers are reducing the frequency of premium brand purchases. Almost one third (31%) have reduced their consumption of Tesco Finest products in the last six months. Meanwhile, 28% have purchased Sainsbury’s Taste The Difference lines less frequently, and over one quarter (26%) are buying from Morrisons’ The Best range less often.
With cheaper and supermarket own-label products growing in popularity, Forbes Advisor explored whether consumers feel they are sacrificing quality.
Almost two-in-five shoppers (39%) claimed that cheaper or supermarket own-label products are generally just as good as the previous go-to brands they switched away from. One in six even claimed that the quality of the less expensive groceries are generally better.
However, over a third (36%) said that, while the quality was worse, it was justified by the cheaper price tag. Just 5% of respondents said that the cheaper price tag was not worth their perceived reduction in quality.
Meanwhile, the study further unveiled which of Britain’s biggest brands people are most reluctant to substitute from their weekly supermarket shop.
Consumers were found to be most loyal to the detergent brand, Fairy. One in five (20%) claimed they would never consider swapping out the brand from their weekly shop.
Overall, people are least likely to swap out cleaning and detergent products, with Dettol (19%), Comfort (18%), Persil (16%) and Ariel (15%) following Fairy as the five brands that British consumers remain most loyal to.
Coca-Cola is the beverage brand people are least likely to swap out. One in six (15%) would never sacrifice Coca-Cola branded products from their weekly grocery shopping. This is followed by rival brand Pepsi (13%).
Cadbury’s chocolate is the food brand British consumers are most loyal to. One in eight (12%) claimed they would not swap this out of their weekly shop. This is followed by Heinz (11%) and Kelloggs (10%).
| Brand | Percentage of respondents who would not swap out their weekly grocery shop |
| Fairy | 20% |
| Dettol | 19% |
| Comfort | 18% |
| Persil | 16% |
| Ariel | 15% |
| Coca Cola | 15% |
| Andrex | 15% |
| Lenor | 15% |
| Pepsi Cola | 13% |
| Plenty | 13% |
| Kleenex | 12% |
| Cadbury | 12% |
| Yorkshire Tea | 12% |
| Heinz | 11% |
| Lucozade | 10% |
| Kelloggs | 10% |
| Ribena | 10% |
| Schweppes | 10% |
| Robinsons | 10% |
| Tropicana | 9% |
Laura Howard, money expert at Forbes Advisor, commented: “Food prices have been steadily climbing during the course of the year, due to issues ranging from distribution, right through to the impact of severe weather events across the world.
“According to a survey of 4,963 households carried out by the Office for National Statistics (ONS) between 31 August and 11 September, a staggering 98% of households cited the ‘increased price of food shopping’ as the main cause of tighter budgets.
“Taking perhaps the most simple of ‘British price barometers’, a pint of milk cost 62p in August compared to 43p in August last year according to ONS figures – that’s a staggering rise of 44%. Costs of other staples such as eggs, bread and pasta have also rocketed.
“To add insult to injury, rising household costs elsewhere, such as energy bills and fuel, has meant that 17% of households surveyed by the ONS are left with ‘less money available’ to actually spend on food.
“As our latest research shows, the stark reality of these figures has meant that ‘brand loyalty’ is fast being shunted down the list of consumer priorities. We found that almost half (47%) of shoppers are buying cheaper branded products, while more than a third (34%) have turned to supermarket-own brands.
“It ties in with recent news that Aldi, which offers 90% own-brand products, has now overtaken Morrisons to become the fourth most popular supermarket chain in the UK.”
NAM Implications:
- Is anyone still in doubt when consumers are faced with 15%+ inflation…
- (In fact, be thankful they are still buying brands…)
- The real issue is what will happen when all price rises have emerged from the pipeline.
- We are patently heading to a two-tier food supply chain
- One low quality for poor people (the majority)
- The other for those that can afford the quality
