76th Consumer Expenditures Study: Meet the 2025 Shopper
The past few years have moved at a dizzying pace for grocery shoppers and the retailers that serve them, as high inflation and factors like bird flu have affected prices at the shelf in a dramatic way. And with newly elected President Trump’s focus on tariffs, coupled with ongoing supply chain uncertainty, it seems unlikely that prices in the hardest-hit categories will drop any time soon.
With all of this happening, consumers have become more used to sticker shock – although they still don’t like it – so factors like product quality and convenience have become more prominent in their decision-making and how they perceive value. In fact, a larger number of shoppers today say that they prefer quality over price versus a year ago. This is one of the major findings from Progressive Grocer’s 76th Consumer Expenditures Study, which is based on a national survey of 1,000 shoppers conducted in early January.
Other important trends unveiled in this year’s study include:
- In-store shopping remains the most popular way to buy groceries, with about a fifth of orders being made online, on average, in the past month. Among those who shop online, satisfaction has increased compared with a year ago.
- Most shoppers actively use their store’s loyalty program, and those who shop at stores without a loyalty program have high interest in enrollment.
- One in three consumers bought fewer groceries in 2024 versus 2023, with price being the top reason. They also ate fewer meals.
- More than two-thirds of shoppers recently purchased prepared foods. Hot entrées remain the most popular category, and overall consumer satisfaction has increased (78% are very or completely satisfied, compared with 73% last year).
- Most consumers today self-identify as “health-conscious” and are highly satisfied with the selection of better-for-you foods and beverages offered in their stores.
Price, Freshness and Quality Drive Store Selection
We asked shoppers to name the most important factor in store selection, and while 77% chose price – making it their top concern – this was actually 6% fewer than last year. This finding may suggest that shoppers are exploring alternative ways to save, such as sales, promotions and bulk purchases (some of the study’s other findings back this up). Rounding out the top five key factors were freshness, quality, product availability and convenient location.
When shoppers were asked to rank these top factors, two-thirds included price in their top three, with a third ranking it as their No. 1 factor. Interestingly, a quarter ranked product quality as the most important, which is a significant increase from the prior year’s survey. In-store cafés/restaurants also saw a dramatic increase in importance, suggesting that while price is still a major concern, people also enjoy being out and eating away from home, even if they may pay a bit more for it.
As for how shoppers define value, they’re making more of a connection between price and quality. While a quarter of those surveyed continue to think primarily of lower prices, some of the verbatim comments shared by shoppers illustrate their evolving views on how they define value. One shopper notes: “To me, ‘value’ at grocery stores means getting high-quality products at reasonable prices. It also involves product freshness, nutritional quality and long-lasting items that reduce waste.” Another shopper puts it this way: “Value to me is good quality at an acceptable price. I feel like my money is going further.”
As shoppers’ views on quality evolve, they certainly aren’t blind to the ongoing issue of price inflation. Just over half (53%) feel that food inflation worsened in 2024. However, compared with the previous year, more feel that this issue is stabilizing, and a greater number than last year (24%) have a more optimistic outlook on future food inflation.
Traditional Chains and Supercenters Are Shopped Most Often
Grocery shoppers continue to flock to traditional chains (87%) and mass/supercenter stores (79%) at least once a month. This is similar to last year’s findings. Clubs have gained in popularity versus a year ago, with 53% now shopping these formats once a month or more. About half of shoppers continue to visit drug stores and dollar stores at least monthly. Meanwhile, convenience stores have seen a decline in grocery shops, and even though 47% of respondents still shop online, a slightly higher percentage than last year (36%) admit to never shopping online.
More than three in four shoppers say that they’re loyal to one store for their grocery shopping, while 12% shop at three or more stores. Walmart retained its dominance as the banner shopped most often, followed by Kroger, ALDI, Publix and ShopRite.
Looking at loyalty programs specifically, almost 60% of shoppers actively use their grocer’s loyalty program. One in five say that their preferred store doesn’t offer a program, but the majority of these shoppers would be open to enrolling if it becomes available.
As for their pet peeves, 14% say that checkout is too slow and could use better-trained cashiers, 9% cite the need for lower prices, and 8% and 6%, respectively, are looking for better product selection and more in-stock items.
Not surprisingly, nearly all shoppers (95%) made purchases in-store in the past month. On average, 79% of shopping trips were made in a store. Online shopping remains a viable, though less used, option, with nearly a quarter choosing in-person delivery and around 20% using curbside pickup or contactless delivery.
Thinking about 2025, most shoppers (75%) expect to continue shopping in-store at the same frequency. Almost half say that they don’t plan to use curbside pickup, in-person delivery, in-store pickup or contactless delivery next year, but this finding is similar to last year’s survey.
On a more positive note, concerning online ordering, 69% of shoppers who used the service in the past month say that they were completely or very satisfied. Their main issues include out-of-stock products (40%), fees being too expensive (33%) and displeasure with product substitutions (28%). Several people who were dissatisfied with the experience admit that they still prefer to pick their own produce.
Grocery Purchases Down, With Dairy and Produce Dominating Monthly Shops
One in three shoppers say that they purchased fewer groceries in 2024, with most naming high prices as the reason (lack of spending money came in at No. 2). Compared with last year, more shoppers cite a decrease in the number of meals they’re eating and weight loss medications as reasons for buying less. At the same time, a growing number of shoppers admit that they’re eating more snacks and meal replacement products, taking away from grocery spending.
Like last year, dairy tops the list of edible categories that consumers purchased most often at grocery stores in the past month, including milk, eggs and cheese, although fresh produce is tied for the No. 1 spot.
Bread/bakery items, salty snacks and fresh meat/seafood also remain top-shopped categories. Purchases of cereal, soda/pop, pet food, energy drinks and meal kits all declined slightly versus the prior year.
Among different age groups, Millennials are more likely to have purchased organic foods and baby food/formula (no surprise, since this is the generation most likely to be currently parenting young children), while Gen Zers are less likely to have purchased fresh produce, fresh meat/seafood, salty snacks, confectionery, coffee, shelf-stable grains and canned vegetables/fruits.
In the nonedible segment, paper products, laundry detergent and personal care products remain the most purchased categories. Interestingly, Millennials overindex in purchasing the following categories: beauty products, pet supplies, personal care products, books/magazines and office supplies. Additionally, Midwestern shoppers are more likely to have purchased prescription medication at supermarkets in the past month.
Compared with last year, 5% more shoppers say that they’ve maintained their purchase habits despite rising prices and inflation. This is another indication that consumers are begrudgingly getting more used to sticker shock. Still, seven in 10 have made adjustments, with more than 30% – and more females – either buying fewer impulse items, buying items at a reduced price or on clearance, or buying more store-brand products. Females are also more likely to buy less fresh meat and seafood and fewer fresh produce items to save money.
More than half of shoppers say that they purchase store brands sometimes or often, and most do so to lower their grocery bills. About 60% estimate that their purchase frequency of store brands is the same as a year ago, with Millennials and Gen X slightly trailing Boomers on these purchases. Meanwhile, 17% of shoppers purchase store brands because they feel that these products are actually superior to their name-brand equivalents.
At least half of shoppers say that they’re purchasing more private label dairy, canned vegetables/fruits and paper products. Compared with last year, significantly fewer are turning to private label bread/bakery items and household products, while more are opting for private label baby food and formula.
Trends in Payments and Store Services
When it comes to payment, eight in 10 shoppers are now using plastic, and there’s been a significant shift from debit to credit cards in the past year (44% now use credit cards for payment). This could be due to shoppers looking to manage cash flow or spread out grocery costs by delaying payment via credit cards.
Among newer technologies related to payments, mobile coupon/discount has the highest satisfaction level, and self-checkout has the highest trial (86% of shoppers have used self-checkout, and 70% were satisfied with the experience). Almost 70% of consumers who have used self-checkout with a mobile app are satisfied, but this service still has one of the lowest trial rates, so grocers may want to explore introducing or promoting this service to attract more users.
Just over half of shoppers regularly use expanded services at grocery stores, which is the same as last year. Pharmacy and gas stations continue to be the most popular, with one in five shoppers using them. While WiFi is used less overall (11% use this service), 23% of Gen Z and 21% of Millennials take advantage of it. Meanwhile, Gen Z, Millennials and Gen X are more likely than Boomers to use such in-store services as ATM/banking, mobile ordering, pickup lockers, in-store dietitian services, cooking/nutrition classes, passport photos and dry cleaning.
Satisfaction with Prepared Foods Increases
Prepared foods remains a hot category in the supermarket, with just over two-thirds of shoppers purchasing these products on an average of 2.3 occasions – and Gen Z, Millennial and Gen X consumers are outspending Boomers. (An impressive 85% of Millennials made these purchases in the past month, followed by 84% of Gen Z.)
Additional good news is that shoppers’ satisfaction with prepared foods at grocery has improved, with 78% now saying they’re completely or very satisfied.
Of those who don’t purchase prepared foods, 47% say that these items are too expensive, 46% prefer not to buy them at a grocery store or opt to cook at home, and 42% say they don’t plan to make such a purchase when they go to the store. (The fact that they aren’t thinking of prepared foods when they go to the supermarket suggests that grocers could better advertise their offerings in direct communications with customers, as well as on social media.)
Prepared hot entrées such as rotisserie chicken, fried chicken and lasagna continue to be the most popular, followed by baked goods prepared in the store and prepared cold sides.
The most important factor when consumers purchase prepared foods is price/value (61% selected this attribute, compared with 65% last year), followed by quality (57%), taste (57%) and freshness (50%), while one in five is most influenced by portion size. Gen Z and Millennials are more likely than Gen X and Boomers to select convenience and location as top factors.
Like last year, dinner is the most popular daypart for prepared food purchases at grocery. While 55% overall shop at dinnertime, fewer Millennials shop at this time (46%), with 36% of the younger crowd hitting the store around lunchtime. A whopping 83% of all shoppers consume these meals at home.
More than half of shoppers continue to rank prepared foods at casual dining restaurants as better than grocery. Convenience store food still falls on the lower end of the spectrum, but its quality perception has improved compared with last year.
Meanwhile, 37% of shoppers say that they’ve tried made-to-order prepared food in their supermarket (slightly less than last year), and 22% have ordered meal kits. One in five has eaten food from in-store restaurants, and 30% say that they would try this service if their store offered it.
Healthy Outlook for 2025
Today’s shoppers continue to evolve in their views of health and wellness, with 72% now identifying as “health-conscious” – slightly more than last year. Nearly all are at least somewhat satisfied with their store’s current selection of healthy foods and beverages.
The health-related aspects that shoppers are most concerned about or interested in are fresh, sugar and sodium, which is similar to last year. Concern about calories or caffeine has slightly decreased.
About 80% of shoppers buy local products at grocery stores at least occasionally (this is slightly higher than last year), with quality and support for local businesses being the primary reasons.
Finally, the in-store health-focused offerings that are most valuable to shoppers include the in-store pharmacy (28%), healthy recipe cards offered at the shelf (20%) and free in-store health magazines (16%). Almost a quarter of Gen Z shoppers find value in healthy cooking classes, which is significantly higher than other groups.
Spotlight on Gen Z
Looking to learn more about up-and-coming grocery shoppers in Gen Z? Here are some additional findings from PG’s 76th Consumer Expenditures Study that might help:
- The so-called “homebody generation” doesn’t shop in-store as often as Boomers and Gen X, although when Gen Zers are in the store, they’re more likely to browse, and they’re definitely attracted to lower prices (even more so than product quality).
- They also go for name brands and are more interested in trying new brands compared with older generations.
- They may be more cautious about using loyalty programs, as only 6% of those whose stores don’t have loyalty programs say that they’d enroll in such a program if it were offered.
- They purchase prepared foods significantly more on average than Boomers, and comparatively more than other generations. A fifth of them say that they’ve purchased prepared platters in the past month.
- When buying prepared food in other places, they’re more likely than all other generations to use a digital home delivery service.
- They’re even more health-conscious than other generations, with an impressive 58% satisfied with their grocery store’s offerings in this area.
- They’re more likely to view sustainable practices such as energy-efficient equipment/fixtures and ethical sourcing policies as “really important,” and 28% say that they’re willing to pay “a lot or somewhat more” for a sustainable grocery store.
The survey for Progressive Grocer’s 76th Consumer Expenditures Study was fielded from Jan. 2-8, 2025, and includes responses from 1,000 grocery store shoppers ages 18 and up. To qualify, respondents had to identify as U.S. residents who shop at grocery stores at least once a month and serve as the primary or shared decision-maker for grocery shopping in their household.