From Fuel Prices to the Food Shop: Home Replaces the Car as the New Battleground for the Cost-Of-Living Crisis

After weeks of Brits adjusting to the shock of record petrol prices, the cost of running a home is set to take over as the key battleground in combating the cost-of-living crisis. Nationally, 40% of people say their financial position is getting worse - with home energy bills (48%) and soaring food prices (20%) now the biggest causes of hardship, compared to 10% that cite the cost of running a car (10%).

At the time when the summer months will see the biggest estimated hike in grocery spend on record - rising by an average of £516 in 2022 - the majority of Brits are eating out less than usual (50%) and looking to save money on grocery shopping (50%) - priority areas that have overtaken the focus on driving and transport costs (40%).

With inflation at a new peak, the cost-of-living crisis has become the single-minded concern for two in three British households (65%) this summer - and has dwarfed other worries, such as the Ukraine war (8%), COVID (8%), the climate emergency (7%) and general political uncertainty (7%).

The findings are from the latest edition of Bakkavor's 'State of the Nation Tracker' - a quarterly study that explores people's relationship with food in relation to the work, social, ethical and financial issues that frame their daily lives. The study examines living and shopping habits, cooking and eating trends plus the issues that influence shopping behaviours. Within the context of the current cost-of-living crisis, the latest study reveals the top 10 facts that are re-shaping Britain's relationship with food this summer.

1. Spending less: People's relationship with food has become significantly more focused on saving money, with 44% of adults saying they are reducing spend on groceries in order to keep family finances afloat - and 48% are having to compromise on lifestyle essentials to afford the food shop.

1. Making cutbacks: To make ends meet, people are cutting out take-aways (45%), focusing on throwing less food away (45%), making packed lunches (30%), skipping meals (20%) and switching to discounter supermarkets.

1. Avoiding treats: Cutting back on treats is a priority - overall 55% have cut them out as many are avoiding top-up shops to remove the risk of impulse buying during the week.

1. Risk to diet: There is a serious risk that people's diets could suffer from the cost-of-living crisis, as price dominates shopping decisions. Nationally, only 14% of people said they are now looking for healthier food options in store, down from 18% at the start of the

1. Risk to the planet: Of concern, sustainability has taken a back seat as a result of the cost-of-living crisis. Reducing plastic use [19%], and food waste [20%], remain important to many but fewer people are making grocery decisions with protecting the planet front-of-mind.

1. Less savvy shopping: Less affluent shoppers are most likely to have stopped shopping around for their groceries. Whilst done to save on petrol costs and to avoid impulse buys, this may mean that many are missing opportunities to find cheaper groceries at other supermarkets.

1. Bad news for the hospitality sector: Whilst eating out recovered after COVID restrictions ended in January, it did not return to pre-COVID levels and, now with the cost-of-living crisis, it is set to be one of the first treats people feel they can easily do without (42%).

1. Life at home: Scratch cooking, which boomed during lockdown, remains popular as people look to save money. This may also be a consequence of the boom in hybrid working, which is now the future of work for 25% of people (up from 9% pre-COVID). Home working aligns with more online grocery shopping [12%], which is popular with older people [27%]. Quick delivery services which evolved during lockdown are set to remain as a mainstay - for many, an alternative to restaurants and getting in the car for a take-away.

1. Intimate gatherings: Home working and cost-of-living cutbacks mean people are spending more time at home with family and close friends. Barbeques, home picnics, and garden parties, will be the hallmark of summer holidays this year, instead of eating out and going to parties.

1. Summer outlook: This summer, food shopping will be less frequent but bigger than before Covid, with shoppers planning meals more and visiting fewer stores to avoid impulse buying.

Mary Kirk, Head of Insight at Bakkavor comments: "From the wellbeing challenges of getting through lockdown, as a country we now find ourselves in a new crisis, where rising prices pose a serious threat to every household. Our research highlights the scale of this concern, but it also suggests people are adapting - many being quick to make cutbacks and to re-prioritise.

In the months ahead this will play out in terms of people's relationship with food and grocery shopping, particularly when the likelihood is that dining out will be replaced my smaller gatherings and meal occasions in or around the home. At Bakkavor we recognise the changed economic context, and we are working hard to bring value for money to every basket and inspiration to every meal - through an array of enjoyable solutions and treats that are fresh and offer convenience without compromise."

For more information, further data tables or to arrange interviews, contact:

Sally Cooling/ Guy Bellamy

elephant communications: 07766 775216 / 07908 551589

[email protected]

[email protected]

Note to editors

The research was conducted for Bakkavor using a quick survey online research platform in June 22 - using a representative sample of 500 adults. Additional insight sourced from IGD ShoppaVista.

About Bakkavor

We are the leading provider of fresh prepared food ("FPF") in the UK, and our presence in the US and China positions the Group well in these, highgrowth markets. We leverage our consumer insight and scale to provide innovative food that offers quality, choice, convenience, and freshness. Over 19,000 colleagues operate from 46 sites across our three markets supplying a portfolio of over 3,200 products across meals, pizza & bread, salads and desserts to leading grocery retailers in the UK and US, and international food brands in China.

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