Consumers more sensitive to rising prices and shrinking portion sizes

Rising gas prices in the US are being blamed for more expensive groceries, smaller restaurant portions and a hike in restaurant prices, says a new report released Monday.

And that translates to a reduced splurge on premium ice creams, nights dining out, and an increased reliance on coupons and deals, says market research consultant Technomic.

The results are telling, says Bob Goldin, executive vice-president, noting that consumers have become more sensitive to portion sizes and value for money.

Their survey, for instance, found that 84 percent of the 1,000 consumers polled in April believe that grocery prices have risen in the past three months, while 62 percent believe that restaurant prices have also risen.

For many US consumers, the rising cost of food isn't in their imagination. Both Kraft Foods and Sara Lee hiked prices and McDonald's warned of a small price increase on their menu items as well. These increases have largely been blamed to rising commodity costs.

Rising gas prices related to transportation and shipping are also being passed on to the consumer.

About half of consumers polled remarked that packaged food sizes have gotten smaller, while 32 percent said the same is true of restaurant portions.

That's because companies have already begun shrinking food packages in the last few years in response to rising manufacturing costs. Kellogg's, for instance, reduced their cereal boxes by about 15 percent and raised prices by four percent this year.

Tropicana orange juice also shrunk by eight percent due to rising gas and shipping costs, and Heinz ketchup bottles were also downsized.

Meanwhile, if restaurants have started to shave portion sizes in a bid to help their bottom line, Goldin warns that consumers are on to them and have become acutely sensitive to how much food-bang they're getting for their buck.

 

New Articles
tvDownton Abbey Christmas special
Arts and Entertainment
Wolf (Nathan McMullen), Ian (Dan Starky), The Doctor (Peter Capaldi), Clara (Jenna Coleman), Santa Claus (Nick Frost) in the Doctor Who Christmas Special (BBC/Photographer: David Venni)
tvOur review of the Doctor Who Christmas Special
News
peopleIt seems you can't silence Katie Hopkins, even on Christmas Day...
News
news
PROMOTED VIDEO
Life and Style
ebookNow available in paperback
ebooks
ebookPart of The Independent’s new eBook series The Great Composers
News
i100
Arts and Entertainment
Left to right: Stanley Tucci, Sophie Grabol and Christopher Eccleston in ‘Fortitude’
tvSo Sky Atlantic arrived in Iceland to film their new and supposedly snow-bound series 'Fortitude'...
Arts and Entertainment
Jenna Coleman as Clara Oswald in the Doctor Who Christmas special
tvForget the rumours that Clara Oswald would be quitting the Tardis
Arts and Entertainment
Japanese artist Megumi Igarashi showing a small mascot shaped like a vagina
art
News
The Queen delivers her Christmas message
newsTwitter reacts to Her Majesty's Christmas Message
Arts and Entertainment
tv
Life and Style
fashion
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Food & Drink

    Recruitment Genius: Personal Trainer / PT - OTE £30,000 Uncapped

    £25000 - £30000 per annum: Recruitment Genius: The fastest growing fitness cha...

    Investigo: Finance Analyst

    £240 - £275 per day: Investigo: Support the global business through in-depth a...

    Ashdown Group: Data Manager - £Market Rate

    Negotiable: Ashdown Group: Data Manager - MySQL, Shell Scripts, Java, VB Scrip...

    Ashdown Group: Application Support Analyst - Bedfordshire/Cambs border - £32k

    £27000 - £32000 per annum: Ashdown Group: Application Support Analyst - near S...

    Day In a Page

    A Christmas without hope: Fears grow in Gaza that the conflict with Israel will soon reignite

    Christmas without hope

    Gaza fears grow that conflict with Israel will soon reignite
    After 150 years, you can finally visit the grisliest museum in the country

    The 'Black Museum'

    After 150 years, you can finally visit Britain's grisliest museum
    No ho-ho-hos with Nick Frost's badass Santa

    No ho-ho-hos with Nick Frost's badass Santa

    Doctor Who Christmas Special TV review
    Chilly Christmas: Swimmers take festive dip for charity

    Chilly Christmas

    Swimmers dive into freezing British waters for charity
    Veterans' hostel 'overwhelmed by kindness' for festive dinner

    Homeless Veterans appeal

    In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
    Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

    'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

    Yazidi girls killing themselves to escape rape and imprisonment
    Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

    Ed Balls interview

    'If I think about the deficit when I'm playing the piano, it all goes wrong'
    He's behind you, dude!

    US stars in UK panto

    From David Hasselhoff to Jerry Hall
    Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

    Grace Dent's Christmas Quiz

    What are you – a festive curmudgeon or top of the tree?
    Nasa planning to build cloud cities in airships above Venus

    Nasa planning to build cloud cities in airships above Venus

    Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect
    Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

    Clocks, rifles, swords, frogmen’s uniforms

    Surrounded by high-rise flats is a little house filled with Lebanon’s history
    Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

    Four months after the bombardment, Gaza’s wounds are yet to heal

    Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
    Gastric surgery: Is it really the answer to the UK's obesity epidemic?

    Is gastric surgery really the answer to the UK's obesity epidemic?

    Critics argue that it’s crazy to operate on healthy people just to stop them eating
    Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

    Homeless Veterans appeal: Christmas charity auction

    Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
    Pantomime rings the changes to welcome autistic theatre-goers

    Autism-friendly theatre

    Pantomime leads the pack in quest to welcome all