Inflation’s Effect on Family Budgets

By Hayley Philip August 22, 2024 | 6 MIN READ

The Dirt

Inflation doesn't look like it's going away anytime soon, especially for food prices. So we combed through new research for insights into food budgeting and how food brands can address these ongoing stressors.

Global Food

Nutrition

Inflation’s Effect on Family Budgets

Food Production

Food Regulations & Policy

Food Security

Health and Nutrition

By Hayley Philip August 22, 2024 | 6 MIN READ

The Dirt

Inflation doesn't look like it's going away anytime soon, especially for food prices. So we combed through new research for insights into food budgeting and how food brands can address these ongoing stressors.

In Mintel’s latest comprehensive report, Michele Scott, Associate Director of US Research for Food and Drink at Mintel, explores the evolving landscape of family meal planning and the challenges of inflation, budgets, and getting what consumers want.

This summary highlights the key findings and insights from the report, along with some takeaways and future outlook for consumers.

Key Findings and Insights

The primary focus of this report is on the balance between nutrition, convenience, and the associated stressors faced by families in the U.S. Here’s what today’s consumers prioritize:

Nutrition and Convenience

Nutrition is the most important attribute for families when it comes to feeding their children, with 84% of consumers agreeing on its significance. However, while nutrition is essential, families are not willing to pay extra for it.

Instead, ease and speed of meal preparation and cleanup are the attributes families are most willing to pay a premium for. This indicates a significant opportunity for brands to simplify the family meal experience.

food budget, Inflation’s Effect on Family Budgets

Source for chart: Mintel

Economic Pressures and Inflation

The report highlights the ongoing impact of economic pressures on families, particularly inflation and the cost of living. Inflation has remained sticky, especially concerning food, making feeding the family a persistent challenge.

Despite improvements in the broader economy, food prices have stayed high, causing stress for families. With food being a non-negotiable purchase, grocery shopping has become particularly stressful, emphasizing the need for affordable convenience solutions.

Smaller Family Sizes and Budget Constraints

Families today are getting smaller, and budgets are tighter. This trend complicates the concept of “family size,” as bulk or multi-serving products need to be reframed in terms of value and convenience. Products that assist with meal planning and preparation resonate broadly, as they help manage both time and financial constraints.

Smaller family sizes create a need for products that offer flexible portion sizes or can be easily repurposed as leftovers, reducing food waste and maximizing value.

food budget, Inflation’s Effect on Family Budgets

Frozen Food Popularity

The increasing popularity of frozen foods is a key trend identified in the report. Frozen meals reduce the pressure of expiration dates, making them a practical choice for families looking to balance convenience and budget. These products provide a solution that is both cost-effective and reduces food waste.

Struggling families, often working long hours to make ends meet, particularly benefit from the convenience and affordability of frozen foods. This trend indicates a shift towards products that can offer both ease of use and economic value.

Innovations in Family Meal Solutions

Bulk and Flexible Portion Products

Brands are introducing bulk proteins and flexible portion products to cater to families of all sizes. These products allow consumers to use exactly what they need, reducing waste and making meal planning more efficient. For example, pre-cooked bulk proteins can be used as needed, providing a quick solution for both small and large families.

Ready-to-Eat and Frozen Meals

Ready-to-eat (RTE) and frozen meals are increasingly popular, offering total meal solutions that mimic foodservice quality without the high price. Brands are focusing on quality and convenience, ensuring these meals are nutritious, quick to prepare, and cater to diverse tastes.

food budget, Inflation’s Effect on Family Budgets

Private Label Innovations

Private labels are stepping up with innovative side dishes and snacks, often at lower prices than national brands. These products range from casual family dinners to special occasions, providing consumers with high-quality, convenient options. Examples include Target’s savory sides and Aldi’s grain and gluten-free snacks, which cater to dietary restrictions and preferences.

Kid-Friendly Meal Solutions

Products designed for easy preparation by children are gaining traction. Brands are creating tiered approaches, from simple heat-and-eat options to meals with minimal ingredients and safe cooking instructions. These solutions empower kids to help in the kitchen, reducing the burden on parents.

Single-Serve and Portion-Controlled Meals

Brands are breaking stereotypes of TV dinners with single-serve meals that offer high-quality, nutritious options. These meals cater to individual needs, whether due to scheduling conflicts or varying family member preferences.

Enhanced Meal Planning Tools

Brands and retailers are collaborating to offer comprehensive meal planning tools. These tools include pre-made shopping lists, meal plans, and product suggestions that simplify the planning process and ensure balanced, nutritious meals.

food budget, Inflation’s Effect on Family Budgets

Takeaways from Savvy Consumers

Simplify Meal Planning

  • Look for products that offer meal planning assistance, such as pre-made shopping lists or meal kits, to save time and reduce stress

Embrace Convenience

  • For busy families, ready-to-eat and frozen meals provide quick, nutritious solutions without the prep

Value in Versatility

  • Smaller families benefit from products offering flexible portion sizes or repurposed as leftovers to reduce food waste and maximize value

Nutritional Balance

  • Families seek products balancing nutrition and ease of preparation to ensure healthy meals without added stress

Smart Shopping

  • Seeking out products that clearly communicate nutritional benefits and prep time make meal choices easier and faster

Looking Ahead

The future of family meal planning will likely see a continued emphasis on convenience as economic pressures and time constraints persist. Brands that can offer products that reduce meal-time stress will be in high demand. Smaller family sizes will drive the need for more flexible portion sizes and innovative solutions that cater to diverse family structures.

Are consumers willing to pay for sustainability?

As sustainability becomes an increasingly important issue, families are showing a bit more willingness to pay more for sustainable products.

However, the report highlights that convenience and nutrition are top priorities, with a significant portion of consumers also valuing sustainability in their purchasing decisions, it is not the top need in these economic times. This willingness is often balanced against budget constraints and the overall value perceived in the product.

As economic conditions fluctuate, the attributes families prioritize may shift. In times of economic prosperity, convenience products may become even more valuable. Conversely, during economic downturns, families may prioritize cost-saving measures, making affordable convenience solutions critical.

The Bottom Line

The report underscores the importance of understanding the nuanced needs of families. By focusing on ease, nutrition, and value, families can successfully navigate the evolving landscape of family meal planning.