Consumer behaviour highly resilient in the face of changing market situations
Over the last few years we have seen turmoil in the international political and economic environment which has directly impacted the short- and mid-term behaviour of both consumers and trade. One only needs to think of the conflict in Ukraine and the dramatic influence on raw material prices leading to huge price inflation in and outside the food sector. Or more recently the very high impact of exploding worldwide cacao prices.
Despite all of the above it is interesting to see how in time consumers seem to be highly flexible and strongly resilient in the way they adapt to the new situation.
The Dutch branch of consultancy Deloitte have identified top trends among consumers in their latest annual consumer behaviour report with some interesting findings:
Reducing concerns about increasing prices
Where in 2023 89% of Dutch consumers claimed to be very worried about increasing food prices this percentage decreased for 2024 to 83%. While still high in absolute terms, shoppers explain their reduced worries due to changes in behaviour by their ability to buy cheaper products e.g. own label products and products more often on promotion.
Increasing use of loyalty cards
The percentage of people using loyalty cards is growing. Some 69% of consumers say they use a loyalty card at their primary food retailer, but even 49% now use a loyalty card at their secondary choice store (and even 39% at their third). Retailers are growing their insights into the buying needs and behaviour of their different consumer groups.
High penetration of self-scan
Self scanning has a high penetration in Dutch food retail but this penetration is growing further. 81% of consumers are using now self-scanning vs. only 74% 2 years ago. Already 9% are using their mobile phones to do so.
Minimum order amount for online delivery is less of a barrier
The online share of the Dutch Food retail sector keeps growing. This is caused by several reasons but an important one is that for more and more consumers the required minimum order amount for home delivery is less of a barrier allowing more consumers to star using this service.
Reduction of meat consumption is losing popularity
The percentage of Dutch consumers claiming to reduce their meat consumption has decreased from 38% (last year) to 33%. At the same time consumers are also buying fewer meat alternatives (from 40% last year to 34%). In an era where plant-based and Vegan are so strongly promoted this is quite an outcome.
These trends in consumer behaviour show that consumer shopping and consumption habits change both in line (but sometimes contrary) to overall market and social developments. Let’s not underestimate their resilience.
Pim Haasdijk, MD Green Seed The Netherlands
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