Price Has Replaced Brand Loyalty at the Grocery Store

Price Has Replaced Brand Loyalty at the Grocery Store

A new Zappi survey finds 70% consumers now prioritize price over brand when buying food and beverages, as inflation reshapes how Americans shop for groceries.

Price has overtaken taste and brand loyalty as the dominant driver of grocery purchasing decisions among American consumers, according to new survey data from Zappi, a consumer insights platform — a finding that underscores how sustained inflation has fundamentally altered shopping behavior across income levels.

A nationally representative study of 2,000 United States consumers found that 70% now cite price or value as the top influence in their snack and beverage choices. Nearly a third — 32% — say they would buy the least expensive option that meets their needs regardless of brand. More than 90% have changed their shopping behavior in response to rising costs.

The erosion of brand loyalty is striking in its pace. Consumers who purchase only brand-name products have dropped from 21% to 10% in less than a year, according to Zappi’s comparison with its own 2025 tariff research. Those buying a mix of brand-name and store-brand items have risen 12 percentage points, from 56% to 66% year over year.

The financial pressure driving those shifts is not evenly distributed but is broadly felt. More than 80% of consumers report higher grocery costs in the past six months, with more than one in four seeing weekly increases of more than $50. Nearly 60% of Americans now spend more than $150 per week on groceries. Among households with multiple children, 52% report weekly bills exceeding $200, and 10% spend more than $400 per week.

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For some households, the strain has become acute. Twenty-two percent of consumers say they rely on food banks or community assistance to obtain groceries. Eleven percent report using buy now, pay later services for grocery purchases — a financing mechanism more commonly associated with discretionary spending. Across all income levels, consumers are using coupons or promotions (46%), switching to store brands (40%), buying only essentials (38%) and purchasing fewer items (34%) to manage costs.

Price sensitivity has sharpened to the point where relatively modest increases are enough to stop purchases entirely. A 5% to 10% price rise would deter the majority of buyers in several categories — 62% in cosmetics, 55% in sweet snacks and 51% in beverages. Nearly 70% say they would accept fewer product options in exchange for lower prices, with one in four saying they would be very willing to make that trade.

Values and health claims retain some influence but are losing ground to cost. Roughly four in ten consumers boycotted at least one brand last year, with younger consumers significantly more likely to do so — nearly half of adults aged 18 to 24 reported a boycott, compared with 24% of those aged 56 to 75. On health, 35% say they are more likely to buy healthy snacks or beverages than last year, and labels such as “high protein,” “all natural,” and “low sugar” remain influential. But when price is the deciding factor, one-third will choose the cheapest option regardless.

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“Consumers are under real financial pressure, and with nearly one-third willing to buy the cheapest option that meets their needs, the era of growth driven by price increases is coming to an end,” said Nataly Kelly, Zappi’s chief marketing officer. “For CPG leaders to transform their businesses, they will need to compete on value instead of price, innovating and simplifying their product portfolios in the process.”