Grocery price inflation climbs as shoppers drop environmentally friendly choices

Grocery price inflation has nudged back up to 5.2%, sending environmental concerns down shoppers’ list of priorities at the supermarket, latest figures show.

Inflation, up from 4.9% last month to match July’s figure, comes as just 9% of Britons say they are happy to pay more for items that are better for the planet, according to market research firm Worldpanel by Numerator, formerly Kantar.

A Worldpanel survey found that 50% of British shoppers believe that environmental issues are a critical threat to humanity, with the potential to shape the way they shop.

Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: “People are worried about environmental issues but the data uncovers a growing sense of pessimism among consumers about their ability to really make a difference.

“One in two say they would accept plainer packaging for a product that they trusted was better for the environment while 54% would even be willing to bring their own packaging.

“However, value for money is still a big consideration and just 9% of people are happy to pay more for items that are better for the planet. Only 3% say they would compromise on quality.”

Spending on offers hit its highest level since April at 29.4%, as consumers hunted for deals to ease the burden on their wallets.

New regulations on multi-buy deals on products high in fat, salt or sugar (HFSS) came into effect in England this month, with Worldpanel reporting that 28% of promotional spending on crisps was through multi-buy offers three years ago, falling to just 8% in the month to October 5.

Similarly, promotional spending on multi-buy deals on cereals has fallen from 18% to 5% during the same time period.

Mr McKevitt said: “Households are juggling a lot of different things when choosing what and where to buy their groceries.

“Inevitably, cost will be up towards the top of the list as price rises accelerate.

“However, it’s not just price on shoppers’ minds, Worldpanel data reveals how consumers and retailers are balancing concerns around health and sustainability too.”

Online sales at the grocers are up 12% on last year, making up 12.7% of the market – the highest share since March 2022.

More than one in five British households did their grocery shopping online at some point in September, marking a return to the popularity seen in the latter stages of the Covid-19 pandemic.

Ocado remains Britain’s fastest-growing grocer, with sales rising 3.6% over the 12 weeks to October 5 compared with a year ago.

Lidl also saw double-digit growth, with sales up 10.8%, taking the discounter’s market share to 8.2%.

Tesco once again made the biggest share gain, climbing by 0.7 percentage points to take 28.3% of the market as spending through its tills increased by 6.9%.