Gen Z Food Budgets Tighten As Rising Prices Reshape Shopper Behaviour

The growing cost of food is changing how younger consumers shop for groceries in the UK, with new research indicating that Gen Z is increasingly cutting back on food purchases and buying from different supermarkets.

Some 33% of Gen Z consumers, those born between 1997 and 2012, said they are skipping meals or eating less because of the increase in food prices, according to a survey by cashback app tuck, and reported by The Mirror. 

That compares with 19% of consumers overall, and 11% of shoppers aged 35 to 44 years.

The findings highlight growing pressure on household food budgets at a time when the UK food market continues to contend with elevated production, energy, labour, and distribution costs.

Fewer Treats, Cheaper Buys, Shopping Around

Tuck found that 83% of Gen Z shoppers have changed their grocery-shopping habits because of higher prices, compared with 76% of consumers overall.

Among the changes reported, 58% said they were shopping at multiple supermarkets or had changed where they bought their groceries. 

Some 48% of those Gen Z shoppers surveyed said had begun planning meals more carefully too.

“The figures show just how significant the pressure of rising grocery costs is for younger adults,” explained Neel Thakrar, CEO of tuck.

“Gen Z are making changes across almost every part of their food shopping, from buying fewer treats and switching to cheaper products to avoiding spontaneous purchases and shopping around for the best prices.

“But the most concerning finding is that almost one in three Gen Z consumers are now saying they are skipping meals or eating less because of rising food costs.”

Fresh produce is likely to be particularly relevant to these changing purchasing patterns, as consumers balance the cost of nutritious food against increasingly constrained budgets. 

Price-sensitive shoppers may be more likely to compare retailers, substitute products or adjust the quantities and varieties they buy.

Tuck’s research found that Gen Z shoppers are spending an average of £84 a week on groceries, £24 more than a year earlier. 

The Food Foundation has reported that UK food prices have risen by around 30% since 2022.

For fresh produce sales, meanwhile, the issue extends beyond consumer behaviour. 

Weather-related disruption is adding another layer of uncertainty to the cost and availability of crops.

The Food and Drink Federation (FDF) recently warned that high temperatures and drought conditions across the UK and Europe could put further pressure on food prices. 

The organisation said that “fruit, vegetable and grain supply” is being affected by recent heatwaves, with reduced crop availability potentially feeding through to retail prices.

The FDF’s economists expect these pressures to contribute to food inflation into 2027.

“Competition for fewer resources will in turn push up the price of ingredients for manufacturers,” pointed out Dr Liliana Danila, chief economist at the FDF.

“The UK’s food and drink manufacturers work hard to absorb costs where they can, but are already grappling with rising costs as a result of war in Ukraine and in Iran, so we expect the additional upward pressure of reduced crops will be reflected in retail prices into next year,” she added.

The combination of constrained consumer spending and greater production volatility presents a difficult balancing act for the fresh produce trade.

Retailers and suppliers face pressure to keep fruit and vegetable ranges affordable while dealing with higher input costs and increasingly unpredictable growing conditions.

The tuck research also suggests that younger shoppers are becoming more deliberate about where and how they spend their grocery budgets. 

For the produce sector that means value, availability, meal planning, and minimising waste could become increasingly important factors in shoppers’ purchasing decisions.