A segmentation and characterization of consumers affected by rising food prices

Abstract

The food price inflation in 2022 has put considerable pressure on some consumers, leading to changes in their food choice and consumption behavior. To gain a better understanding of consumers' responses to rising food prices, we conducted an online survey among 1000 consumers in Germany, in which they were asked to self-report the extent of their changes during a period from the beginning of 2022 to November 2022. A principal component analysis was conducted to summarize the queried items into three factors, which were subsequently used for a cluster analysis. The emerging clusters were characterized in terms of sociodemographic as well as psychographic variables, namely locus of control, life satisfaction, optimism, pessimism, human values, and food values. The segment that appears to be most affected by rising food prices consists of about 28% of the sample’s respondents and is characterized by a strong engagement in saving behaviors. These consumers are less satisfied with their lives and more pessimistic, corresponding to their lower incomes and lower likelihood to be fully employed. Communication and policy measures need to be designed in a way that these consumers regain stability and become more confident about the future.