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Diving overview:
- A majority of consumers plan to spend at least as much, or more, on groceries next year as they did in 2025, according to an international survey released Tuesday by consulting firm AlixPartners.
- Grocery is the only category included in the survey where consumer spending is expected to increase overall in 2026.
- People are willing to spend more on groceries in the coming year, but they are also very focused on value and will quickly switch retailers to achieve even some cost savings, data shows.
Dive Insights:
While AlixPartners’ findings appear to be good news for the grocery industry, the data also suggests that retailers will have to work hard to win and retain people’s business.
About a third of U.S. shoppers surveyed said they expect to spend “more” or “much more” on groceries next year than they did in 2025, and half said they believed spending on those products would remain the same. Shoppers ages 25 to 44 were more likely than older consumers to say they planned to spend more on groceries in the next year, as were those with higher incomes.
But shoppers have made it clear they are feeling pressured by the high prices. Among those planning to spend less on groceries in 2026, 45% said they expected to “plan better” their grocery shopping and avoid impulse purchases, while almost the same percentage said they would move to cheaper options. More than a third of these shoppers said they would shop for groceries less frequently.
Two-thirds of U.S. respondents who said they plan to cut back on spending on groceries in the next year said they are doing so because they have less money to spend than in the past, while 13% said they would like to use the funds for other priorities, such as eating out or traveling.
The survey also found that price is the top reason grocery shoppers want to change where they buy their groceries. Sixty percent of U.S. respondents in the survey said they would switch to another retailer for “a better price or promotional offer,” while less than 30% said they would make that change for reasons related to service, convenience or experience. People’s willingness to switch grocery suppliers or brands to gain better access to health-focused products increased as income increased.
“Technologies like digital and delivery are forcing people to visit more grocery stores than ever before, exposing them to a much broader offering and allowing them to be selective,” Matt Hamory, co-leader of AlixPartners’ global grocery business, said in an interview. “And I think this study shows that that’s still true in grocery. I expect that to be true again next year.”
The spending patterns that will take shape next year will be based on trends seen in 2025. Forty-eight percent of U.S. shoppers surveyed said they spent “more” or “much more” on groceries this year than in 2024, while 36% said their spending on groceries in 2025 would be in line with what they spent last year.
The results of this survey are the results of a survey conducted by Alix Partners on 13,115 consumers in China, France, Germany, Italy, Saudi Arabia, Switzerland, the United Arab Emirates, the United Kingdom, and the United States between September and November.
Across all regions surveyed, AlixPartners found that people plan to increase their grocery spending by 8 percentage points over the next year, while also reducing the amount they spend on all other categories included in the survey, including dining out, travel, fitness and wellness.
