Almost three-quarters of Europeans (71%) are forced to drastically change their consumer habits due to record inflation in the EU countries. The fall in the purchasing power of Europeans forced citizens to return to old behavioral patterns that Europeans began to forget about. This is reported by Bloomberg with reference to the report of the research company IRI, which analyzed consumer behavior in the six largest EU economies.
In addition to cuts in non-essential spending, 58% of consumers report spending cuts on essentials, including food and utilities, and 35% of Europeans surveyed admitted to having to go into debt or use their own savings to pay their bills.
“Consumers' willingness to spend is declining, and that trend is unlikely to change any time soon given the surge in prices, including groceries and energy price volatility,” said Ananda Roy, senior vice president at IRI.
The research company notes that the energy crisis and inflation, record for decades, brought consumer sentiment in Europe to a record low. Economists also expect a recession in the near future. IRI analysts note that the crisis situation is forcing Europeans to remember the habits of the harsh 70-80s, forcing them to save on food by reducing diets, or even completely refusing one of the meals. Moreover, citizens are increasingly looking for goods with discounts, using the services of discount retail chains, buying goods under the brand name of retail chains, and even goods that are close to expired.
Almost half (47%) of the Europeans surveyed admitted that they had significantly reduced the cost of delivering groceries, refused or drastically reduced visits to cafes and restaurants. Reduced consumption and austerity are driving changes on store shelves, with fewer high-end and mid-range items and more affordable items. IRI is confident that the trend will continue in the coming months. This will change consumer demand and supply.