Blue Yonder, Dallas, announced the results of its 2025 Global Consumer Sentiment on Grocery Inflation Survey, revealing how sustained inflation, supply chain challenges and global tariffs are influencing grocery spending and broader consumer behavior across generations and regions. 

The survey, which polled consumers across Australia and New Zealand (ANZ), France, Germany, the Middle East, the U.K., and the U.S., found that 85% of overall respondents are concerned about inflation’s impact on grocery prices, illustrating consumer unease and clear changes in purchasing decisions across the world.

“The findings of this survey underscore just how widespread and deeply felt the impact of inflation is on consumers’ everyday lives,” said Ben Wynkoop, senior director and global industry strategist of grocery and convenience at Blue Yonder, in a statement. “From buying fewer grocery items and cutting back on alcohol purchases to shopping at discount retailers and reprioritizing spending across other categories, consumers are navigating prolonged uncertainty — and retailers must adapt accordingly.”

Inflation Drivers

Nearly half (49%) of all respondents believe newly introduced global tariffs are the leading factor behind inflated grocery prices, followed by increased costs for raw materials (42%), increased labor costs in manufacturing and food processing (39%), and increased profit margins for brands and manufacturers (33%).

The perceived top factor driving inflated grocery prices differs across regions. Consumers in the U.S. (65%), the U.K. (56%) and the Middle East (50%) feel global tariffs are the leading cause of rising prices. Consumers in ANZ (50%) feel that increased profit margins for brands and manufacturers is the top factor for inflated prices, while consumers in France (48%) and Germany (47%) believe the increased cost of raw materials is the leading cause of grocery inflation.

There is a generational divide, too. Baby boomers uniquely believe that increased labor costs in manufacturing and food processing are the leading cause for grocery inflation (52%), whereas all other generational groups believe global tariffs are the top cause of inflated prices.

“In today’s global market, tariffs are significantly impacting grocery supply chains, resulting in inventory and logistics challenges, as well as increased costs for both retailers and consumers,” Wynkoop said. “Leveraging advanced technology for AI- and ML-driven scenario planning and visibility across the end-to-end supply chain can help grocers mitigate tariff-related disruptions by increasing agility, resilience and cost savings.”

Across Categories Buying Less, Shifting Behaviors

Inflation’s grip on grocery bills is triggering global concern from consumers. Almost two-thirds of consumers (65%) report they would buy fewer grocery items across categories to cope with price increases, while 42% would shop at discount and wholesale stores. 

In addition, approximately one-third would prefer shopping based on promotions and discounts (36%) and switching to private label brands (34%). 

Alcohol is facing the biggest budget cuts compared with other grocery categories, with one-third (33%) of consumers saying they would reduce alcohol purchases in response to inflation price increases.

“During times of economic uncertainty, consumers often look for ways to save money on essential items such as groceries, from shopping at discount stores to seeking out sales and opting for private label brands,” Wynkoop said. “As a result, retailers tend to prioritize and invest more heavily in their owned brands to accommodate these changing shopping behaviors. Sophisticated retailers are becoming more vertically integrated from production to consumer to maintain greater control over their supply chain, increase profitability and deliver more affordable products to shoppers.”

The Blue Yonder 2025 Global Consumer Sentiment on Grocery Inflation Survey was fielded by a third-party provider in May 2025. Blue Yonder surveyed more than 6,000 consumers across Australia and New Zealand (ANZ), France, Germany, the Middle East, the U.K., and the U.S. to gather insight on their shopping behaviors due to inflated grocery prices and their feelings on what is contributing to prices.