Consumers are reducing dining out, entertainment and vacations in response to inflation, according to new First Insight Inflation Report

PITTSBURGH, Pa.–(BUSINESS WIRE)–Eating tops the list of discretionary spending cuts consumers will make to combat the effect of inflation on their wallets, according to the new Inflation Report from First Insight. With 42% of consumers deciding to save on restaurant meals, the road to post-pandemic recovery for the struggling hospitality industry looks bumpy. The report further reveals that 33% of consumers will reduce their spending on entertainment while 30% will reduce their spending on organic or premium groceries as well as vacations. Fast fashion spending will be reduced by 28% of consumers.

In contrast, the data shows that consumers discount beauty and personal care products and pet services the least. People choose their pets over fancy lattes and the latest binge-worthy Netflix shows.

“The effects of the pandemic continue to drive consumer spending priorities today,” said Greg Petro, CEO of First Insight. “With pandemic restaurant closures followed by limited reopenings due to the Great Resignation, eating out has become much less of a habit for many consumers today. At the same time, millions of pets have been adopted during the pandemic, and consumers have decided that their pets’ happiness is far more important to them than eating out. These shifts in consumer spending will continue to evolve over the next few years, disrupting many industries in profound ways.

The main categories in which consumers will cut spending to cope with rising prices include:

  • Dining out 42%

  • Entertainment 33%

  • Organic or Premium groceries 30%

  • Holidays and Travel 30%

  • Fast Mode 28%

  • Coffee and specialty beverages 26%

  • Streaming services 24%

  • Gym memberships 21%

  • Interior decoration and furniture 21%

  • Video games 20%

  • Alcohol and Spirits 19%

  • Beauty and personal care 16%

  • Pet Services 16%

Overall, the report found that high gas and grocery prices are having a trickle down effect on discretionary spending at all levels. This report is the second in a series that will continue to reveal key consumer issues as they face the highest rate of inflation in the United States in 40 years.

Learn more and view the infographic here.

About First Insight, Inc.

First Insight, the global leader in next-generation experience management (XM), is transforming the way companies make better decisions that lead to a sustainable future. Its customers include some of the world’s largest vertically integrated brands, department stores, consumer products companies, mass retailers and wholesalers. For more information, please visit www.firstinsight.com.

Methodology

First Insight’s findings are based on a survey conducted through its proprietary platform. The report is based on a sample of 1000 people contacted by email in April 2022. The sample was balanced proportionally by generation, region and gender. Further details of the results are available upon request.

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