June 1, 2022

UK consumers buying less meat and fish due to a worsening cost of living crisis

UK consumers are buying less meat, fish, and chicken as they are finding ways to save money due to a worsening cost of living crisis in the country, Reuters reported.

NielsenIQ, a market researcher, found that meat, fish, and poultry volume sales dropped 13% in the first four weeks to April 23 year-in-year. This period includes the recent Easter holidays, suggesting that UK consumers are reducing their purchases of these foods.

The biggest squeeze on UK household earnings since the 1950s is caused by rising costs, and consumer confidence is reaching record lows.

Last week, official figures revealed that over a quarter of UK citizens are struggling to pay their household costs, and Sainsbury's, the country's second largest grocery chain, said consumers are monitoring every penny.

Cash-strapped UK consumers are seeking for ways to save money, such as purchasing more supermarket own-brand products.

Mike Watkins, NielsenIQ's UK head of retailer and business insight, said if soaring living costs continue, retailers will be under pressure to ensure they are meeting customer mindsets, expected to focus more on reducing the amount of things purchased.

Total sales at UK supermarkets declined 1.8% in value over the four weeks compared to the same period last year, according to NielsenIQ, with a modest decrease in the average number of goods in the shopping basket - 11.2 vs 11.5.

Nielsen said German-owned discounters Aldi and Lidl lead the market in terms of sales growth on a value basis, rising 6.4% and 9.1% respectively, echoing findings from rival market researcher Kantar.

Tesco, the market leader, was the only one of the UK's main four supermarkets to gain market share on a value basis.

-      Reuters