KANSAS CITY — Overall inflation may be subsiding from its peak, but food costs remain stubbornly high driven by restaurant prices that outpaced grocery on a 12-month basis, the US Department of Labor reported. As a result, many consumers say they are eating out less, trading down to private label or buying larger value packs that offer more food per dollar. However, not everyone is penny pinching.
Shoppers who follow a health-and-wellness lifestyle or who are on a diet are still more willing to spend extra on those better-for-you (BFY) products that help them achieve their goals.
“If they see themselves losing 5 lbs here and 10 lbs there, they will pay that $6.50 for a loaf of bread or a package of flatbreads because they’re feeling better and can fit in this suit or dress that they haven’t worn for 10 years,” observed Mike Timani, president and chief executive officer, Fancy Pokket. Typically, the more health claims on a product, the higher the price point.
“We try to be very aware of how we’re creating a recipe for the consumer we’re targeting so we’re not outpricing ourselves,” said Laura Morgan, director of marketing, Ozery Bakery.
“I still see a focus on the BFY and the functional claims, and we’re probably going to see products that are focused on a few health attributes rather than focusing on many of them,” she added. “That will help offset the increase in price that you would see from a product that has a lot of attributes.”
Consumers are seeking a bargain, but many won’t compromise when it comes to their health.