How Will Food Inflation Redefine Holiday Gift Giving?

Rising meal prices will likely redefine holiday shopping this year. New research from The Center for Food Integrity (CFI) digs into inflation's impact on consumer purchases.

“They are looking for opportunities to maintain the comfort and nostalgia of the holidays, while being mindful of the impact on their pocketbook at the same time,” Mickie French, CFI executive director, said in a release.

According to the latest CFI Illuminate Digital Cultural Insights research, conducted in partnership with FMI—The Food Industry Association, consumers are looking for high-quality items for a lower price. Illuminate research leverages digital ethnography that analyzes millions of online conversations in real time. 

What's Your Time Worth? 

Consumers are also evaluating how much their time really is worth in an inflationary environment. Because of this, CFI said consumers are weighing which shopping conveniences are worth the cost during the busy holiday season. 

For example, is online grocery shopping worth the delivery fee? For families with young children and those working more than one job, delivery could help them save time and gas by eliminating a trip to the store.

“According to FMI’s U.S. Grocery Shopper Trends: Holiday Shopping report, 45% of consumers are most concerned about rising meal prices as compared to other holiday expenses,“ Steve Markenson, director of research and insights for FMI—The Food Industry Association, said in a release. “Fortunately, most shoppers indicate they are in control of their grocery budgets, with 71% of consumers making some adjustment to their holiday meal shopping to adapt to the changing economic landscape. This indicates that shoppers are still able to find budget-friendly items to meet their needs.”

Disrupted Shopping Patterns

The pandemic significantly affected shopping patterns, resulting in more changes for food retailers and shoppers, Markenson said.

In preparation for the holidays, shoppers are seeking ways to save money on groceries by choosing discount retailers and store brands. They are also buying in bulk and using coupons.

“The insights provide valuable information for the food system to understand and anticipate consumers’ needs as the food system works to ensure everyone has access to food that meets their needs and budgets,” French added.

Inflation is also impacting gift-giving, causing shoppers to redefine “luxury.”

“They are prioritizing the emotional feelings of luxury, such as comfort and wellness, instead of high price tags,” she said.

That means they are making room in their holiday budgets for small, affordable luxuries that stand out from their everyday purchases for themselves and for others. They are also opting toward giving practical gifts this year.

Inflation and higher prices are affecting consumers at all levels, French said.  The research showed that low-income to lower-middle-class consumers and those with children are most likely to be talking about this topic.

Read More:

Food and Swine: A FarmHer's Love for Family, Ag and Food

Dear NY Times: Here’s Your Sign

The Elephant In The Barn: Why We Can’t Ignore This Risk on the Pig Farm