Consumers less concerned with availability
25 January 2024See our latest consumer research results, focusing on shortages of food and groceries both in-store and online.
Consumers have experienced a long period of high food inflation and weaker than expected availability. Availability concerns are now lower. However, system weaknesses which helped create these issues remain in place.
Fortunately, food inflation is declining. See our new food inflation forecasts in our latest Viewpoint report – As food inflation falls, what’s in store for 2024?
Lower availability concerns
In the latest consumer research conducted for IGD (10-11 January 2024), fewer than half of adults (47%) experienced shortages of some food and groceries in-store or online recently. Compare that with a high of 77% in March 2023 when extreme weather conditions in Spain and north Africa affected harvests, resulting in some supermarkets introducing limits on some fruit and vegetables.
Availability concerns are at the lowest level since we started measuring this in July 2021.
Availability concerns lower for fresh produce
Availability concerns have declined again for fresh produce (20% compared to a peak of 52% in March 2023). Concerns continue to remain lower for dairy (16%).
Availability concerns highest in Northern Ireland
Availability concerns continue to be highest in Northern Ireland (60%). This is followed by the North East (53%) and Scotland (52%).
From 31 January 2024, the Target Operating Model (TOM) is scheduled to be implemented. Checks on imports of medium-risk animal products, plants, plant products and high-risk food and feed of non-animal origin from the EU will commence. Pre-notification requirements for low-risk plants and plant products will also be removed.
IGD Viewpoint: The scale of change through transition to TOM is not to be underestimated. It is the most substantial change in trading since EU exit. It is essential that businesses communicate with their supplier bases across the EU and the rest of the world to ensure they are well prepared.
This comes soon after the implementation of the Northern Ireland Retail Movement Scheme.
Subscribers can access the latest Global supply chain trends 2024 here.
See also our recent article on Conflict in the Red Sea – a strategic update.