DALLAS — Amid sustained inflation, rising tariffs, and ongoing supply chain disruptions, global consumers are rethinking their grocery shopping habits—and pulling back spending across multiple categories—according to new survey data from Blue Yonder.
The 2025 Global Consumer Sentiment on Grocery Inflation Survey, which polled over 6,000 shoppers across the U.S., U.K., France, Germany, Australia and New Zealand (ANZ), and the Middle East, reveals that 85% of respondents are concerned about grocery inflation. The findings show widespread belt-tightening, with consumers cutting back on grocery items and reprioritizing spending across apparel, electronics, and entertainment.
Top Inflation Culprits: Tariffs, Materials, Labor, and Profits
Nearly half (49%) of respondents believe newly introduced global tariffs are the primary driver of inflated grocery prices. Regionally, the U.S. (65%), U.K. (56%), and Middle East (50%) consumers cite tariffs as the top factor. Meanwhile, French and German consumers blame raw material costs, and ANZ respondents point to increased profit margins from brands and manufacturers.
Baby Boomers were the only generation to cite labor costs in manufacturing and food processing as the primary cause, while Gen Z, Millennials, and Gen X aligned more with tariff-related concerns.
“In today’s global market, tariffs are significantly impacting grocery supply chains,” said Ben Wynkoop, senior director, Global Industry Strategist, Grocery & Convenience at Blue Yonder. “Retailers need real-time visibility and AI-driven tools to mitigate disruption and remain competitive.”
Discount Stores, Private Labels Gain Traction
Faced with higher food bills, nearly two-thirds of global shoppers (65%) say they’re buying fewer items. Others are shifting where and how they shop:
- 42% are turning to discount and wholesale retailers
- 36% are prioritizing promotions and discounts
- 34% are switching to private-label products
Alcohol has taken the biggest hit, with 33% of consumers cutting back. “Consumers are reevaluating every dollar,” said Wynkoop. “That shift presents an opportunity for grocers to double down on private-label innovation and value messaging.”
Apparel, Electronics Among First to Be Cut
Beyond the grocery aisle, consumers are reducing discretionary spending to offset higher food costs. More than half (56%) are cutting back on clothing and footwear, followed by:
- 46% on consumer electronics
- 43% on streaming/gaming subscriptions
- 36% on personal care and beauty
Only 7% of global respondents said they wouldn’t cut back at all. Regionally, ANZ shoppers were most likely to scale back on apparel (67%), while U.S. and U.K. consumers were close behind.
Takeaway for Retailers: Transparency and Agility Are Key
“With most consumers making trade-offs, retailers must adapt by offering price transparency, investing in value-driven assortments, and strengthening supply chain resilience,” said Wynkoop. “Those who leverage data and technology to remain responsive will be best positioned to win shopper loyalty in turbulent times.”
A third-party research firm conducted the Blue Yonder survey in May 2025. Visit blueyonder.com for more insights and a full breakdown of regional results.