Sixty-two percent of UK consumers are ‘extremely concerned’ about the cost of living squeeze, compared to 50% in the rest of Europe, according to the latest EY UK Future Consumer Index.
The survey of 1,000 UK consumers found that affordability is a priority, with 43% saying it is a key decision while making a purchase.
As many as 87% have seen price rises in fresh and packaged food, up from 59% in June 2022.
UK consumers continue to be more open to private label, with 80% willing to buy private label packaged food compared to 50% of their European counterparts.
The survey further found that affordability continues to be felt most by low-income households, with 54% of this group prioritising affordability – up from 42% in June 2022 – compared to 39% of middle-income consumers.
The proportion of middle-income consumers prioritising affordability nevertheless rose from 24% in June 2022 to 39%, while rising from 11% to 17% for high-income consumers over the same period.
Additionally, 56% of consumers said sustainable products cost too much, while 71% said the price put them off purchasing.
Nearly half (43%) said they are comfortable using a chatbot for customer queries – indicating increasing openness to AI – but 41% said they are not willing to share data for cheaper product recommendations.
Silvia Rindone, EY UK&I Retail Lead, said: “Our latest survey shows the strain the ongoing cost-of-living squeeze is having on UK consumers who are making more considered decisions about how and where they spend their money. This challenging, highly-price sensitive environment means brands and retailers need to work harder than ever to understand the factors influencing the UK consumer and re-evaluate ranges and pricing to better meet their needs.
“As online penetration peaks and consumers become more accustomed to purchasing across a variety of channels, retailers need to capitalise on the opportunities that data and AI can offer in order to win new business and improve consumer confidence. Being smart with the data will enable businesses to enhance their value proposition, delivering the right product at the right, affordable price.”
