McKinsey European consumer sentiment survey: How current events are shaping German consumer behavior

McKinsey & Company 1
The invasion of Ukraine in February 2022 has had deep human, as well as social and economic,
impact across countries and sectors.
The implications of the invasion of Ukraine are also rapidly evolving and inherently uncertain.
As a result, this document and the data and analysis it sets out should be treated as a best-efforts
perspective at a specific point of time, which seeks to help inform discussion and decisions taken
by leaders of relevant organizations.
The document does not set out economic or geopolitical forecasts and should not be treated as
doing so. It also does not provide legal analysis, including but not limited to legal advice on
sanctions or export control issues.

Three emerging consumer themes in April 2022
New sources of concern and
tumbling confidence in overall
economy
Sharply rising prices on essentials
with noticeable consequences on
spend
Noticeable activity, demand, and
channel and brand shifts in search
for value for money
1 2 3
How do consumers feel? What do consumer observe? How are consumers reacting?
In Germany, as across the Europe 5, consumers’
top concerns are rising prices (cited by 40%) and
the invasion of Ukraine (34%), way ahead of
COVID-19 (8%)
54% of consumers have a negative view of the
current status of the German economy
Uncertainty regarding energy shortages (53%)
and supply chain shortages (50%) are the
strongest drivers of economic pessimism
Optimism about an economic recovery is lower
than it has been during the COVID-19 pandemic
Nine in ten German consumers perceived an
overall price change, especially for groceries and
gasoline, resulting in a strong increase in spend
In most other categories, spend has already
been reduced, and further reductions are expected,
especially in outer appearance, entertainment, and
travel
Consumer demand changes are most evident in
more conscious use of home energy (cited by
55%)
64% of consumers, especially Gen Z (86%), say
they tried a new shopping behavior in the last few
weeks
A trade-down trend is evident in choices of
retailers and brands, especially for food,
household products, and skin care
Prices and value for money are key decision
criteria in choices of new retailers and brands,
followed by availability of products
Source: McKinsey & Company Germany Consumer Sentiment Survey, 4/12–4/18/2022, n = 1,028, sampled to match German general population 18+ years

Despite the pandemic’s continuing grip on societies in Europe,
rising prices and invasion of Ukraine have now by far overtaken
COVID-19 as top concerns for consumers
Germany UK Italy
France2 Spain
1. Q: Which of the following is your top concern today? Figures may not sum to 100%, due to rounding.
2. For France, political insecurity (9%) and immigration (8%) are concerns mentioned by more than 5% of consumers.
Source: McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled to match European general population 18+ years
12
5
7
8
24
44
Europe 5
9
21
11 9 8
7
8
6
11 14
8
6
7
11
7
34
18
15
32
21
40 44
60
32
47
3
2 4
4
3
Rising prices
Invasion of Ukraine
COVID-19 pandemic
Unemployment/job security
Extreme weather events
Other
Top source of concern1
% of respondents

In Germany, consumers’ greatest source of concern is rising prices,
followed by the invasion of Ukraine
80
67
43
35
23
18
15
14
1
2
Cost/accessibility of healthcare
Invasion of Ukraine
Rising prices
Political uncertainty
COVID-19 pandemic
Extreme weather events/climate change
Immigration
Brexit
Other
1. Q: What are the greatest source(s) of concern for you right now? Please select the top 3.
2. Q: Which of the following is your top concern today?
Top sources of concern today
% of respondents
40
34
8
7
4
2
2
2
1
0
Among top 3 sources of concern1 Top source of concern2

Rising prices are particularly worrying for low-income and
millennial consumers; concerns about Ukraine are over-indexed in
high-income consumers and baby boomers (1/2)
11
7
8
34
40
Overall
Top source of concern1
% of respondents
13 10 11
4 6
10
9 8
6
25
34
41
49
41
32
Low income Middle
income
High
income
15 13 15
6
9
8 7
6
14
6 5
8
22
25
39
42
40
48
35 37
Gen X
Gen Z Millennials Baby
boomers
1. Q: Which of the following is your top concern today?
2. Other includes immigration, cost and accessibility of healthcare, Brexit, political uncertainty.
Split by generation
Split by income
Other
Rising prices
Invasion of Ukraine
COVID-19 pandemic
Extreme weather events

Top 3 sources of concern1
% of respondents
1. Q: What are the greatest source(s) of concern for you right now? Please select the top 3.
80
67
43
35
23
18
15
14
1
4
Rising prices
Immigration
Invasion of Ukraine
COVID-19 pandemic
Extreme weather events/climate change
Cost/accessibility of healthcare
Political uncertainty
Brexit
Other
High
income
Middle
income
Low
income
Gen Z Millennials Gen X Baby
boomer
87
55
46
32
23
23
12
20
3
0
82
67
46
33
25
14
16
13
2
1
74
75
39
40
22
18
17
11
2
2
73
53
47
34
13
21
24
28
6
1
83
61
36
35
23
22
16
20
0
3
81
69
38
34
30
17
14
13
1
2
81
75
51
36
21
15
13
6
1
2
Split by generation
Split by income
Rising prices are particularly worrying for low-income and
millennial consumers; concerns about Ukraine are over-indexed in
high-income consumers and baby boomers (2/2)

On their country’s economic condition, German consumers are
more neutral and less negative than those in the rest of Europe 5
55 58 61 63 67
32 29 24 26 22
13 13 15 11 11
61
27
13
Neutral
Positive
Negative
Net confidence2 −42 −56
−52
−45 −46
−48
1. Q: How are you feeling about [COUNTRY]'s economy today? Rated from 1 “very positive” to 5 “very negative.” For visualization, we merged the categories “very positive” and
“positive” as well as “very negative” and ”negative.” Figures may not sum to 100%, because of rounding.
2. Calculated by subtracting all "negative" answers from all "positive" answers.
Confidence in own country’s current state of the economy1
% of respondents
Germany UK Italy
France Spain
Europe 5

Low-income groups have a particularly negative perception of the
economy; by generations, Gen Z is relatively optimistic
54
32
13
54
32
13
Negative
Overall
Positive
Neutral
% of respondents
61 52 53
31
35 30
8 13 17
Low (<25K) Middle
(25K– 50K)
High (>50K)
39
54 58 58
34
29 31 34
27 17 11 7
Gen X
Millennials
Gen Z Baby boomers3
By income2
By generation
1. Q: How are you feeling about [COUNTRY]'s economy today? Rated from 1 “very positive” to 5 “very negative.” For visualization, we merged the categories “very positive” and “positive” as well as “very
negative” and ”negative.” Figures may not sum to 100%, because of rounding.
2. Income brackets for France, Germany, Italy, Spain are in €; for the UK, the same brackets were used with £.
3. Baby boomers includes silent generation.

Consumers whose biggest concern is the COVID-19 pandemic are
more optimistic than those whose top concern is rising prices
63
54
34 32
30
32
39 45
7
14
27 22
COVID-19
pandemic
Rising prices Invasion
of Ukraine
Extreme
weather events
% of respondents
Net confidence2 −41 −10
−39 −8
54
32
13
Negative
Overall
Positive
Neutral
−56
1. Q: How are you feeling about [COUNTRY]'s economy today? Rated from 1 “very positive” to 5 “very negative.” For visualization, we merged the categories “very positive” and “positive” as well as “very
negative” and ”negative.” Figures may not sum to 100%, because of rounding.
2. Calculated by subtracting all "negative/very negative" answers from all "positive/very positive" answers.

Supply-related risks are the most common concerns for consumers
with a negative outlook on the economy
1. Q: You mentioned that you are feeling negatively about [COUNTRY]’s economy in light of the Ukraine invasion. Which of the following topics are you most
uncertain about? Please select up to 3. Figures may not sum to 100%, because of rounding. Bars only show reasons with agreement >20%.
47
42
39
31
27
26
24
16
12
9
3
0
Impact of influx of refugees
Interruption of gasoline supply
Supply chain shortages
Energy shortages
Rising interest rates
Risk of further escalation of the war
Unemployment rates/job security
Food shortages
Risk of nuclear disaster
Uncertainty on the stock market
Restrictions on international travel
Other
41
50
53
33
19
22
14
23
14
8
2
1
45
44
36
29
22
33
20
17
12
10
3
1
53
40
43
30
19
31
33
12
11
7
3
0
49
32
41
29
37
20
23
15
13
11
3
0
46
44
24
34
39
24
28
11
12
10
2
0
Top 3 reasons for negative view on economy1
% of respondents who perceived the current status of economy and/or the economy's outlook as negative
Germany UK Italy
France Spain
Europe 5

15 13 17 16 17 18 17 14
21
33
59 64
62 63 66 59 59
49
52
52
26 24 22 21 17
23 24
37
27
14
Sept 2020 Oct 2021
June 2020
Mar 2020 May 2020
Apr 2020 Feb 2021
Nov 2020 Apr 20223
Mar 2022
Optimistic: The
economy will rebound
within 2–3 months and
grow just as strong as or
stronger than before the
current crisis
Neutral: The economy
will be impacted for 6–12
months or longer and will
stagnate or show slow
growth thereafter
Pessimistic: The current
crisis will have lasting
impact on the economy and
show regression or fall into
lengthy recession
In Germany, pessimism hits an all-time high–even exceeding levels
of pessimism since the start of the COVID-19 pandemic
Confidence in own country’s economic recovery after crisis,1 % of respondents
20202 2021 2022
1. Q: What is your overall confidence level surrounding economic conditions after the coronavirus (COVID-19) crisis subsides (ie, once there is herd immunity)? Rated from 1 “very optimistic” to 6 “very pessimistic.” Top, middle, and bottom two
boxes of scale aggregated to "Optimistic," "Neutral", and "Pessimistic." Figures may not sum to 100%, because of rounding.
2. Average of biweekly pulse surveys shown for Mar–May 2020.
3. Question in Apr 2022 was not framed for coronavirus: What is your overall confidence level surrounding the potential economic impact related to the invasion of Ukraine that began in Feb 2022?
Source: McKinsey & Company COVID-19 Germany Consumer Pulse Survey, 4/12–4/18/2022, n = 1028; 3/22–3/29/2022, n = 1,005; 10/15–10/22/2021, n = 1,025; 2/23–2/27/2021, n = 1,013; 11/09–11/16/2020, n = 1,053; 9/24–
9/27/2020, n = 1,053; 6/18–6/21/2020, n = 1,011; 5/21–5/24/2020, n = 1,008; 4/30–5/3/2020, n = 1,002; 4/16–4/19/2020, n = 1,005; 4/2–4/5/2020, n = 1,010; 3/26–3/29/2020, n = 1,002; 3/20–3/22/2020, n = 1,014, 04/14–04/18/2022,
n = 1,028, sampled to match Germany’s general population 18+ years

33 35 35 38 42
52 51 49 50 44
14 14 16 12 14
Pessimism about economic recovery is high across countries and
more than doubled since October 2021
18
−17
25
−23
24
−19
19
−23
13
−19
1. Q: What is your overall confidence level surrounding the potential economic impact related to the invasion of Ukraine that began in Feb 2022? Rated from 1 “very optimistic” to 6 “very pessimistic.” Top, middle, and bottom 2 boxes of scale
aggregated to "Optimistic," “Neutral," and "Pessimistic.” Figures may not sum to 100%, because of rounding.
Confidence in own country’s economic recovery after current crisis1
% of respondents
Germany
Apr 12–18, 2022
Change in % pessimistic vs Oct 2021 survey,
percentage points
Change in % optimistic vs Oct 2021 survey,
percentage points
Optimistic: The economy will rebound
within 2–3 months and grow just as strong
as or stronger than before the current crisis
Neutral: The economy will be impacted for
6–12 months or longer and will stagnate or
show slow growth thereafter
Pessimistic: The current crisis will have
lasting impact on the economy and show
regression or fall into lengthy recession
Italy
Apr 12–18
UK
Apr 12–18
France
Apr 12–18
Spain
Apr 12–18, 2022

One-third of German consumers—40 percent in the low-income
group—have a negative view of the current state of the economy
33
52
14
Neutral
Overall
Optimistic
Pessimistic
Confidence in own country’s expected economic recovery after current crisis1
% of respondents
1. Q: What is your overall confidence level surrounding the potential economic impact related to the invasion of Ukraine that began in Feb 2022? Rated from 1 “very optimistic” to 6 “very pessimistic.” Top, middle, and bottom 2 boxes of scale
aggregated to "Optimistic," "Neutral", and "Pessimistic.“ Figures may not sum to 100%, because of rounding.
2. Income brackets for France, Germany, Italy, Spain are in €; for UK, the same brackets were used with £.
3. Baby boomers includes silent generation.
40 36 27
49 50 57
11 15 16
High (>50K)
Middle
(25K–50K)
Low (<25K)
16
29 39 39
55
54
49 53
30 17 13
Baby boomers3
Gen Z Gen X
Millennials
8
By income2
By generation

economy
spend
for value for money
1 2 3
COVID-19 (8%)
travel
55%)
weeks

German consumers are in line with the vast majority of Europe 5
respondents in observing price changes
1. Q: In the last 4–6 weeks, have you seen a general change in the prices of any goods you commonly buy?
Inflation, year-over-year,
Mar 2022, %
7.6 5.1 7.0 6.8 9.8
7
93
11
89
12
88
10
90
6
94
Source: OECD (inflation data); McKinsey & Company Europe Consumer Pulse Survey, 4/12–4/18/2022, n = 5,075 (France, Germany, Italy, Spain, UK), sampled
to match European general population 18+ years
9
91
Yes
No
Germany UK Italy
France Spain
Price changes perceived in last 4–6 weeks1
% of respondents
Europe 5

Consumers are especially likely to have seen price increases in
groceries and kitchen and dining products
1. Q: In the last 4–6 weeks, have you seen a general increase in the prices of any goods you commonly buy?
2. Q: In the last 4–6 weeks, How have you observed prices changing across the following categories? Rated from 1 "Prices decreased significantly" to 5 "Prices increased significantly."
3. Calculated by subtracting all "decreased" answers from all "increased/significantly increased" answers.
2
2
1
1
2
1
1
1
1
2
1
2
2
2
1
3
3
6
24
29
30
27
30
34
32
36
34
44
38
40
42
37
22
34
43
41
44
32
38
39
31
32
30
30
25
26
24
22
72
55
22
23
16
22
15
12
13
12
12
10
14
9
10
11
1
3
10
6
9
17
17
13
22
17
23
14
21
22
24
27
Skin care and makeup
Pet food and supplies
Home decoration and furniture
Household supplies
Apparel
Fitness and wellness services
Sports and outdoors equipment, supplies
Personal-care products
Kitchen and dining products
Home improvement and gardening supplies
Consumer electronics
Groceries/food for home
Vitamins, supplements, and OTC medicine
Footwear
Accessories
Jewelry
Decreased
Stayed the same
Increased Not sure
Increased significantly
Price changes perceived in last 4–6 weeks
General price change perceived1
% of respondents
Price change perceived by category2
% of respondents who shopped category
7
93
Yes
No
Net change3
92
87
64
63
58
53
51
50
43
43
41
38
37
34
32
30

Two-thirds of consumers predict prices will continue to rise in the
next 12 months; however, only 48 percent of Gen Z expect it
66
62
44
29
9
I am concerned that the prices of
everyday purchases have been increasing
I believe prices will continue to rise
throughout the next 12 months
I am planning to buy fewer products/services
in the future if prices continue to rise
I have had to scale back my lifestyle
due to an increase in prices
I intend to use more “buy now, pay
later” services in the coming months
48 64 72 69
44 62 65 65
32 48 48 41
26 33 33 24
11 14 10
Statements Millennials Gen X
Gen Z
Baby
boomers2
Generational cut
Agreement to price-related statements
% of respondents rating statement 5 or 6 on 6-point scale1
Between −3 and +3
< −3 > +3
Difference from all consumers,2
percentage points
1. Q: Please read the following statements and indicate your level of agreement with each. Rated from 1 "Strongly disagree" to 6 "Strongly agree."
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here top source of concern.
All consumers
4

As spend on essential products rises, consumers save less and
spend less on nonfood discretionary items—and expect further cuts
Change of spend in general categories
% of respondents
6 10
17
10
29
39
76
30 22
24
43
45
17
60 61 66
28
16
Rent/
mortgage
Energy/
utilities
Transport
and gasoline
Food and
essentials
Nonfood
discretionary
Put money
into savings
Net change3
11 −1
56
50 44 −24 13 3
53
48 40 −19
Higher About the same Lower
7 9 15 10
29
36
73
34
30
27
40
48
20
57 55
63
31
16
Rent/
mortgage
Energy/
utilities
Transport
and gasoline
Food and
essentials
Nonfood
discretionary
Put money
into savings
Change in spend in the last 4–6 weeks1 Expected change in spend in the next 4–6 weeks2
1. Q: How have your household finances been affected over the past 4–6 weeks? Rated from 1 "Reduced a lot" to 5 "Increased a lot.“ For visualization, we merged “increased a lot” and “increased” as well as “reduced a lot” and “reduced.”
"Last 4–6 weeks" refers to the change in behavior vs before the invasion of Ukraine.
2. Q: How do you expect your spend on the following categories to change in the next 4–6 weeks? Rated from 1 "Will spend significantly less" to 5 "Will spend significantly more.“ For visualization, we merged “significantly more” and “more” as
well as “significantly less” and “less.” "Next 4–6 weeks" refers to the plan consumers make today, so this change is incremental to past change.
3. Calculated by subtracting all "lower" answers from all "higher" answer in each column/time frame.

Majorities of consumers report spend increases and expect further
increases in energy, transport and gasoline, and food
1. Q: How have your household finances been affected over the past 4–6 weeks? Rated from 1 "Reduced a lot" to 5 "Increased a lot.“ For visualization, we merged “increased a lot” and “increased,” as well as “reduced a lot” and “reduced.”
"Last 4–6 weeks" refers to the change in behavior vs before the invasion of Ukraine.
2. Q: How do you expect your spend on the following categories to change in the next 4–6 weeks? Rated from 1 "Will spend significantly less" to 5 "Will spend significantly more.“ For visualization, we merged “significantly more” and “more,” as
well as “significantly less” and “less.” "Next 4–6 weeks" refers to the plan consumers make today, so this change is incremental to past change.
3. Calculated by adding the blue highlighted cells, ie, increased past spend or expect to increase future spend, excluding consumers that have decreased or expect to decrease their spend.
Change of spend in general categories in last 4–6 weeks1 and expected
in next 4–6 weeks,2 % of respondents
Calculation example
Observed/expected price increase,³ % 23
Decrease No change Increase
Decrease 4 3 1
No change 4 63 6
Increase 2 7 10
Change of spend in
next 4–6 weeks, %
Change
in spend
in last
4–6
weeks,
%
Germany UK Italy
France Spain
25
66
62
69
34
19
21
55
55
53
25
9
31
76
60
62
26
9
15
62
50
41
23
10
21
53
50
52
25
10
Energy/utilities
Transport and gasoline
Food and essentials
Nonfood discretionary
Put money into savings
Rent/mortgage
Europe 5
23
62
55
55
27
12
Between −3 and +3
< −3 > +3
Difference from all consumers,2 percentage points
Observed/expected price
increase,³ %

+42
+7
-11
-17
-25
-17
-22
-19
-37
-34
-16
-2
+6
-11
-25
-20
-17
+30
Spend on groceries, gasoline, and kitchen has risen strongly and is
expected to further increase, offset by cuts in many other categories
8
14
32
30
38
38
30
30
44
42
29
14
8
20
36
32
31
50
21
21
13
13
21
8
11
7
8
13
12
14
9
11
12
14
40
Apparel
Quick-service restaurant
Groceries
Tobacco products
Food takeout and delivery
Footwear
Alcohol
Restaurant
Jewelry
Accessories
Toys and baby supplies
Household supplies
Personal-care products
Skin care and makeup
Home and furniture
Sports and outdoors
Home improvement, garden
10
Kitchen and dining
Decrease Increase
Stay the same
9
19
17
28
32
40
20
22
24
13
20
34
28
42
29
39
36
47
19
12
11
12
15
16
17
64
32
11
33
15
18
22
19
19
5
Pet food and supplies
International flights
Books/magazines/newspapers
10
Vitamins and OTC medicine
Entertainment at home
Hotel/resort stays
Out-of-home entertainment
Pet care services
Cruises
Fitness and wellness
Personal-care services
Gasoline
Short-term home rentals
Vehicles
Travel by car
Adventures and tours
Domestic flights
+34
+1
-20
-20
-26
-14
-27
-20
-37
-32
-16
-3
+1
-10
-29
-26
-17
+21
Net change,3
next 4–6 weeks
+7
-10
−11
-21
-29
-17
-9
-10
-10
+37
+6
-18
+2
-13
-7
-16
-13
-23
Net change,3
last 4–6 weeks
Change, last
4–6 weeks1
Net change,3
next 4–6 weeks
Net change,3
last 4–6 weeks
Change, last
4–6 weeks1
1. Q: In the past 4–6 weeks, how has the amount you have spent on these categories changed? Spent less on this category, spent the same amount, spent more on this category.
2. Q: Over the next 4–6 weeks, do you expect that you will spend more, about the same, or less money on these categories than usual? Will spend less on this category, will spend about the same, will spend more on this category.
3. Net change is calculated by subtracting the % of respondents stating they decreased spend from the % of respondents stating they increased spend in the respective category.
+10
-7
−7
-23
-22
-28
-5
-6
-7
+51
+12
-23
+5
-27
-11
-17
-17
-28
Net change > +15
Net change −15 to +15
Net change < −15
xx xx xx
Change1 and expected change2 of spend by product category
% of respondents who shopped category

More than half of German consumers, especially baby boomers, say
they have become more conscious about home energy use
1. Q: In which other areas of your life, if any, have you changed your shopping behavior in the last 4–6 weeks?
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here generational cut.
Between −3 and +3
< −3 > +3
Difference from all consumers,2 percentage points
Change in purchase behavior in last 4–6 weeks1
% of respondents
55
20
16
14
11
11
10
9
7
5
5
4
4
21
I have become more conscious about my home energy usage
I have purchased supplies to donate to the Ukraine
humanitarian effort and/or have donated money or time to volunteer
I have stocked up on products (e.g., grocery or household items)
that I use often in the event that there are supply chain shortages
I have changed my mode of transport to use less gasoline/to save money
I have started/increased my purchase of products from companies that
have taken a stance on the invasion of Ukraine
I have reduced/stopped purchasing products from Russian companies
I have delayed/canceled a planned purchase of a car/other vehicle
I have delayed/canceled a pending trip/vacation
I have reduced/stopped purchasing products from companies
that have not taken a stance on the invasion of Ukraine
I have offered to shelter/sponsor Ukrainian refugees
I have delayed/canceled a planned purchase of a new home
I have sold/plan to sell my car or other vehicle
I have sped up my plan to purchase a new home
None of these
Generational cut
Millennials Gen X
Gen Z
Baby
boomers2
39 52 51 66
14 19 27 21
15 19 17 24
17 17 17 15
15 13 14 15
17 13 11 9
15 12 11 9
15 15 9 6
9 9 10 6
8 7 6 6
11 8 3 1
11 5 4 2
10 6 3 3
11 5 3 1
All consumers

economy
spend
for value for money
1 2 3
COVID-19 (8%)
travel
55%)
weeks

v
In purchasing groceries and essentials, 64 percent of consumers
tried a new shopping behavior, with 41 percent trying a private label
64
41
23
23
11
11
10
9
5
Shop from a different website than normal
Any new shopping behavior3
Shop from a different retailer/store than normal
Try a private label/store brand
Try a new digital shopping method
(eg, ordered groceries via app)
Switch to a different brand than normal
New shopping method
Use a new shopping method
(eg, pickup and food delivery subscription)
Switch from online to a brick-and-mortar store
Did activities in last 4–6 weeks1
% of respondents
Plan to do activities in next 4–6 weeks,2
% of respondents who did not do activity in
the last 4–6 weeks
1. Q: In the last 4–6 weeks, which of the following have you done when purchasing groceries and other essentials (eg, toiletries, cleaning products)?
2. Q: How likely are you to change your shopping behavior in the next 4–6 weeks when purchasing groceries and other essentials (eg, toiletries, cleaning products)? Rated from 1 "Not likely at all" to 6 "Extremely likely". "Extremely likely" and "Likely"
answers counted for planning this activity
3. Any new shopping behavior applies if a respondent has chosen at least 1 of the other categories mentioned.
Activities when shopping for groceries and essentials
35
24
10
13
8
7
6
7
10
Activities
94% of consumers noticed a price increase
when shopping groceries & essentials

64
41
23
23
11
11
10
9
5
Any new shopping behavior3
Try a new digital shopping method
(eg, ordered groceries via app)
Switch to a different brand than normal
Try a private label/store brand
Switch from brick-and-mortar store to online
Shop from a different retailer/store than normal
Use a new shopping method
(eg, pickup and food delivery subscription)
Shop from a different website than normal
Switch from online to a brick-and-mortar store
When buying groceries and essentials, Gen Z and millennials are
far more likely than older consumers to try new shopping behaviors
Generational cut
All consumers
Between −3 and +3
< −3 > +3
1. Q: In the last 4-6 weeks, which of the following have you done when purchasing groceries and other essentials (eg, toiletries, cleaning products, etc.)?
3. Any new shopping behavior applies if a respondent has chosen at least one of the other categories mentioned.
Activities when shopping for groceries/essentials in
last 4–6 weeks1
% of respondents
percentage points
Gen Z
86
39
33
28
22
23
20
20
20
Millennials
71
44
31
29
15
15
16
14
8
Gen X
65
43
22
23
11
7
7
7
3
Baby boomers
50
36
15
15
6
6
4
4
2

Many consumers have switched to shopping at discounters, turning
away from convenience and specialty store for groceries/essentials
Retailer formats changed to in past 4–6 weeks1
% of respondents who shopped from a different retailer/store than normal in last 4–6 weeks
Retail format
Shopping in last 4–6 weeks,1 % of consumers
3
3
60
23
36
15
29
20
38
34
39
51
15
31
25
43
17
4
9
5
Hypermarket
Discounter
Supermarket
Convenience store
Specialty grocery store
Did not shop there Shopped more
Shopped less Shopped same amount
1. Q: You mentioned that in the last 4–6 weeks you started shopping from a different retailer or store than you normally would when purchasing groceries and other essentials. How has your shopping at the following types of
retailers/stores changed?
2. Calculated by subtracting all "shopped less" answers from all "shopped more" answers.
23% of consumers changed their
retailer/store in the last 4–6 weeks
Net change2
28
−12
−16
−29
−30

Consumers trying a new retailer for groceries and essentials most
often choose one based on price/promotions and value for money
1. Q: You mentioned you shopped from a different retailer/store in the past 4–6 weeks when purchasing groceries and other essentials (e.g., toiletries, cleaning products).What were the main reasons you decided to try this new retailer/store?
Respondents could choose up to 3 reasons.
2. Calculated by subtracting the answers of all consumers from those in a subgroup—here by generational cut.
Top reasons for choice of new retailer/store for groceries/essentials1
% of respondents who shopped from a different retailer/store than normal in last 4–6 weeks
Between −2 and +2
< −2 > +2
Difference from all
consumers,2
percentage points
23% of consumers changed their retailer/store in the last 4–6 weeks
All consumers
38
35
21
21
18
17
14
13
13
12
11
10
8
8
8
7
5
3
Better quality
Cleaner/has better hygiene measures
Better prices/promotions
Better value for money
Products are in stock
More easily accessible from my home
Save cost of gasoline
I can get all the items I need from 1 place
Wanted variety/a change from my normal routine
Less crowded/has shorter lines
Family/friend recommendations
I support their response to the invasion of Ukraine
Shares my values
Supporting local businesses
Offers natural/organic offerings
Has more sustainable/environmentally friendly options
Wanted to treat myself
The company treats its employees well
41
38
28
25
18
15
14
14
14
9
11
13
8
3
4
4
8
5
Millennials
43
37
16
14
19
16
16
10
11
8
11
6
6
8
3
3
8
8
Gen X
33
30
12
30
9
12
12
23
7
16
16
14
9
9
9
5
7
12
Gen Z
31
31
24
15
22
26
15
9
19
17
6
7
11
13
4
2
9
4
Baby
boomers

When shopping for groceries and other essentials, large
proportions of consumers are trading down
23
31
32
33
37
37
38
40
41
40
53
5
5
5
6
5
6
6
4
5
8
3
72
64
63
62
59
58
56
56
53
52
44
Healthcare, beauty, and baby
Household products
Frozen foods
Bread and bakery
Snacks and confectionary
Dairy and eggs
Non-alcoholic beverages
Fresh fruit and vegetables
Hot drinks
Fresh meat, fish, poultry
Alcohol
No change Switched to higher-priced brand Switched to lower-priced or private-label brand
1. Q: You mentioned that in the last 4-6 weeks you tried a different brand than you normally would when purchasing groceries and other essentials. Which of the following best describes how/where you switched brands?
2. Calculated by first adding up the answers for "switched to lower-priced or private-label brand" and then subtracting the answers for "switched to higher-priced brand" and "no change."
Brand-switching behavior of consumers1
% of respondents who switched to a different brand for groceries or essentials in last 4–6 weeks
Net trade-
down2
44
28
26
23
17
15
12
12
7
4
−12
47% of consumers changed a
groceries/essentials brand in the last 4-6 weeks

For consumers choosing a new groceries/essentials brand, price
and value for money are the key criteria
1. Q: You mentioned you tried a new/different brand than what you normally buy in the last 4-6 weeks when purchasing groceries and other essentials (e.g., toiletries, cleaning products, etc.).What were the main reasons that drove this
decision? Respondents could choose up to 3 reasons.
Between −2 and +2
< −2 > +2
percentage points
47% of consumers changed a groceries/essentials brand in the last 4–6 weeks
Top reasons for choice of new brand for groceries/essentials1
% of respondents who bought a different brand than normal in last 4–6 weeks
All consumers
50
48
18
18
13
11
11
10
9
8
7
6
6
6
5
4
4
4
Natural/organic
Products are in stock
Better price
Wanted to treat myself
Better value for money
Large package sizes
Available where I’m shopping
Better quality
The company treats its employees well
Wanted to try a new brand I found
Wanted variety, change from normal routine
Wanted to try a type of product that I’ve never tried before
More sustainable, better for environment
Supporting local businesses
Better shipping, delivery cost
Cleaner, safer
Shares my values
Their response to invasion of Ukraine
44
46
23
15
19
15
12
12
7
6
9
5
5
9
5
1
9
6
Millennials
58
48
13
22
9
12
8
4
12
8
6
7
5
3
2
3
5
5
Gen X
34
28
13
17
23
9
15
15
21
11
4
11
17
11
13
6
9
4
Gen Z
54
57
22
18
9
9
10
12
2
9
8
6
4
4
2
5
2
1
Baby
boomers2

Across non-grocery/essentials categories, at least half of consumers
have taken some action if they perceived a price increase
Perception of price
increase and action taken
by consumers by product
category
1. Q: In the last 4–6 weeks, how have you observed prices changing across the following categories? Rated from 1 "Prices decreased significantly" to 5
"Prices increased significantly.“ Includes respondents who indicated price increases (top 2 boxes).
2. Q: In the last 4–6 weeks, have you done any of the following when purchasing [product]? Respondents who answered they switched to a different or
lower-priced brand, delayed their purchase, switched to a different store or website, purchased a smaller quantity.
No action
Delayed a purchase
Switched to a different brand
Switched to a higher cost brand
Switched to a lower cost brand
Switched to a different store/website
Purchased a larger size/quantity
Purchased a smaller size/quantity
89
64
54
52
51
45
44
42
40
39
36
33
33
Footwear
Home improvement & gardening supplies
Kitchen & dining products
Skincare & make-up
Vitamins, supplements, and OTC medicine
Pet food & supplies
Accessories
Apparel
Home decoration & furniture
Sports & outdoors equipment & supplies
Fitness & wellness services
Jewelry
Consumer-observed price
increases by category1
% of respondents rating 4 or 5
on 5-point scale
Changed behavior by category when price increase perceived2
% of respondents reacting to perceived price increase
24
34
24
36
43
41
47
36
49
50
48
37
25
18
1
21
16
12
20
21
25
22
23
13
20
29
17
16
5
9
11
9
13
11
12
10
15
19
10
4
5
5
3
5
6
8
9
4
5
8
13
5
40
24
18
25
33
18
16
21
28
13
16
18
16
8
12
9
11
7
11
10
13
12
8
13
9
19
24
12
24
28
16
22
19
19
11
18
13
25
24
13
24
6
11
6
2
10
11
14
9
8
6
10

Reasons for choosing a product/brand in the past 4–6 weeks1
% of respondents rating as 1 or 2 (unimportant) and 5 or 6 (important) on 6-point scale
1. Q: In the last 4–6 weeks, when choosing a product/brand to purchase, how important to your purchase decision were the following factors that may be attributed to the product or brand? Rated from 1
"Not important at all" to 6 "Extremely important."
2. Calculated by subtracting the unimportant (ratings 1 and 2) value from the important (ratings 5 and 6) value.
Rational reasons for trying a new brand dominate, especially lower
price and availability
46
32
35
54
30
58
28
24
47
38
24
25
19
“Rational”
Beliefs
Sustainability 11
14
16
16
16
4
5
11
6
9
25
30
32
No artificial ingredients/natural/GMO free
Recyclable products, packaging, or initiatives
Small or neutral carbon footprint
Sustainably sourced materials
Fair trade practices
Lower price
Available in the store closest to me
Locally sourced/locally owned
Brand that I know and trust
Brand that treats employees well
Brand is actively supporting the humanitarian effort in Ukraine
Brand has stopped doing business in Russia
Brand has made public statements in support of Ukraine
Unimportant Important
Net
importance2
34
22
14
12
9
54
49
21
29
0
−5
−13
40

Reason for trying a new brand in the past 4–6 weeks1
Net importance rating2
1. Q: In the last 4–6 weeks, when choosing a product or brand to purchase, how important to your purchase decision were the following factors that may be attributed to the product or brand? Rated from 1 "Not
important at all" to 6 "Extremely important.”
2. Calculated by subtracting the unimportant (rating of 1 or 2) value from the important (rating of 5 or 6) value.
“Rational”
Beliefs
Sustain-
ability
German consumers are among those placing relatively high
importance on sustainability
Europe 5
27
21
11
9
1
54
45
24
43
32
5
1
-8
No artificial ingredients/natural/GMO free
Recyclable products, packaging, or initiatives
Fair trade practices
Small or neutral carbon footprint
Available in the store closest to me
Sustainably sourced materials
Locally sourced/locally owned
Lower price
Brand that I know and trust
Brand that treats employees well
Brand actively supports humanitarian effort in Ukraine
Brand has stopped doing business in Russia
Brand has made public statements in support of Ukraine
France Spain
UK Italy
Germany
34
22
14
12
9
54
49
21
40
29
-5
-13
0
29
16
7
2
-7
40
36
27
33
26
-13
-16
-22
6
14
2
-2
-6
63
47
1
40
27
9
11
-10
32
21
8
12
-4
44
36
31
40
32
5
-2
-3
35
33
22
22
12
66
57
40
60
48
23
17
11

McKinsey European consumer sentiment survey: How current events are shaping German consumer behavior

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