PWC published in February 2023 a study on the evolution of consumer trends(GCIS, bi-annual study – only in french) which identifies several important trends impacting the retail sector and more particularly that of large food distribution. These articles are available in French.
Although the trend seems to draw a slowdown in inflation from June 2023, its impact on changing consumer behavior should not be minimized.
Indeed, inflation reaches between 5 and 6% but can exceed 15% on food!
This phenomenon has a strong impact on the purchasing power of the French. Due to the sharp increase in prices, almost 50% of them expect to reduce their spending on all product categories.
In order to reduce their expenses and offset inflation, more than half of French people will tend to turn to promotional products while nearly 30% of them turn to distributor brands.
The study shows that the French remain generally quite attached to brands, hence the attraction for products on promotion which allow them to consume the same products as usual while spending less. Nevertheless, the forecasts are clear: the French will tend to buy more entry-level products and private labels to the detriment of organic brand products and high-end products.
(Article from Olivier Dauvers – only available in french)
However, a distinction should be emphasized: Generation Z, more concerned about environmental issues than previous generations, does not follow the general trend. The results of the study show an increase in spending on organic branded products.
Inflation therefore has a negative effect on the consumption of products with a higher environmental value. However, it is important to underline the general desire of the French who would turn to local and sustainable products if they had to pay more.
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