Consumers and businesses struggle amid inflation: Survey Monitor

By Marlen Ramirez | October 31, 2022

Reading time: 3 minutes

Abstract

A compilation of the latest surveys pertaining to the impact of inflation on holiday travel, small businesses and general concern levels in 2022.

Research Topics:: Bus.-To-Bus. Research | Consumer Research | Research Industry – COVID-19
Industry/Market Focus:: Consumers | E-commerce | Foods/Nutrition | Grocery/Supermarkets | Packaged Goods | Travel
Content Type: E-Newsletter Article

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Utility use lowers as prices increase

Many adults in the U.K. are reducing their electricity and household appliance use to lower their energy bills. According to the BBC, 90% are delaying turning on heat to save money amid rising costs and nearly 90% have started to turn off lights and electrical goods when not in use. The cost of living has gone up by 10.1% and 56% expect their financial positions to worsen in the future.

The cost of groceries has also continued to rise with the highest increases being low fat milk (42.1%), margarine and other vegetable fats (30.5%), whole milk (30.2%) and flour (29.6%). To help with finances, many are adjusting their spending habits in various ways. People are purchasing less clothing for themselves and their children, travelling less, having fewer outings and delaying larger purchases.

The research was conducted from October 5-10, 2022. Read more.

The struggle continues for small businesses

While larger corporations are managing price increases, small businesses are struggling and believe the worst is yet to come. According to a survey conducted by MetLife and the U.S. Chamber of Commerce, inflation is the largest concern for 50% of small businesses and 71% believe it will get worse. Sixty-six percent are comfortable with their current cash flow but 88% are worried of a potential U.S. economic downturn next year. Sixty-three percent of businesses maintained their staff size this year while 20% have increased staffing. Twenty-eight percent of small businesses believe the economy is in good health and 38% plan to increase their staff size next year.

The research was conducted from July 21 - August 8, 2022. Read more.

CPG and retail industry predict deflation

Should we expect prices to increase even more in 2023? According to Advantage Sales, we can expect price increases to slow in the first half of 2023. Manufacturers and retailers explain their deflation strategies to reduce prices. Seventy percent of manufacturers are planning to invest in their brand through marketing, 50% will drop to the bottom line to improve P&L, 37% will develop e-commerce capabilities and 33% plan to increase trade promotions. Seventy-nine percent of retailers plan to lower everyday prices, 64% will increase promotions, 31% will invest in people and 23% plan to invest in technology. Only 6% of manufacturers have no deflation strategies.

The research was conducted from August 18 - September 2, 2022. Read more.

Inflation tops COVID-19 in European concern levels

Although COVID-19 has been a top concern for many the past few years, it now ranks as the No. 3 concern for European consumers, according to McKinsey & Company. The rising prices of products and services ranked as the top concern in Germany (48%), France (54%), Italy (42%), Spain (55%) and the U.K. (67%). Overall, Europeans have a negative view, with 58% thinking they are in a bad economic state.

Ninety-three percent of respondents have noticed changes in price for the items they purchase. Respondents indicated that the items that increased in price significantly are groceries/food (59%), gasoline (83%), home energy (70%), cleaning and personal products (25%) and rent (18%). To save money, 56% of consumers have changed the brands they purchase for their groceries and essentials.

The research was conducted from June 8-12, 2022. Read more.

Adjusting holiday travel plans

Forty-three percent of Americans are planning to travel this holiday season, but with inflation top-of-mind, most are making travel plan adjustments. According to a Bankrate study, inflation is the reason 78% of Gen X and 73% of Baby Boomers are adjusting their holiday travel plans. To save money, many are traveling for a shorter time (26%), finding cheaper destinations and accommodations (25%), traveling shorter distances (23%) and 24% are taking fewer trips.

Twenty-three percent of travelers are opting to drive instead of flying to their destinations. Twenty-two percent of travelers are using credit cards and rewards, including miles and points, to fund their holiday trips.

The research was conducted from September 7-9, 2022. Read more.