Grocery price inflation climbs as shoppers drop environmentally friendly choices


Grocery price inflation has nudged back up to 5.2%, sending environmental concerns down shoppersโ€™ list of priorities at the supermarket, latest figures show.

Inflation, up from 4.9% last month to match Julyโ€™s figure, comes as just 9% of Britons say they are happy to pay more for items that are better for the planet, according to market research firm Worldpanel by Numerator, formerly Kantar.

A Worldpanel survey found that 50% of British shoppers believe that environmental issues are a critical threat to humanity, with the potential to shape the way they shop.

Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: โ€œPeople are worried about environmental issues but the data uncovers a growing sense of pessimism among consumers about their ability to really make a difference.

โ€œOne in two say they would accept plainer packaging for a product that they trusted was better for the environment while 54% would even be willing to bring their own packaging.

โ€œHowever, value for money is still a big consideration and just 9% of people are happy to pay more for items that are better for the planet. Only 3% say they would compromise on quality.โ€

Spending on offers hit its highest level since April at 29.4%, as consumers hunted for deals to ease the burden on their wallets.

New regulations on multi-buy deals on products high in fat, salt or sugar (HFSS) came into effect in England this month, with Worldpanel reporting that 28% of promotional spending on crisps was through multi-buy offers three years ago, falling to just 8% in the month to October 5.

Similarly, promotional spending on multi-buy deals on cereals has fallen from 18% to 5% during the same time period.

Mr McKevitt said: โ€œHouseholds are juggling a lot of different things when choosing what and where to buy their groceries.

โ€œInevitably, cost will be up towards the top of the list as price rises accelerate.

โ€œHowever, itโ€™s not just price on shoppersโ€™ minds, Worldpanel data reveals how consumers and retailers are balancing concerns around health and sustainability too.โ€

Online sales at the grocers are up 12% on last year, making up 12.7% of the market โ€“ the highest share since March 2022.

More than one in five British households did their grocery shopping online at some point in September, marking a return to the popularity seen in the latter stages of the Covid-19 pandemic.

Ocado remains Britainโ€™s fastest-growing grocer, with sales rising 3.6% over the 12 weeks to October 5 compared with a year ago.

Lidl also saw double-digit growth, with sales up 10.8%, taking the discounterโ€™s market share to 8.2%.

Tesco once again made the biggest share gain, climbing by 0.7 percentage points to take 28.3% of the market as spending through its tills increased by 6.9%.

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