Food & Bev Briefing: Grocery shoppers, brand value and bar hopping

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Welcome to our food & beverage insights briefing,
In this monthly email, we will curate the most important insights from our team of industry, political and economic experts and deliver them right in your inbox. Consider it your one stop shop for the data you need to know about the food & beverage industry.
This month’s edition explores why consumers are walking away from food brands, perceptions’ on how tariffs are driving costs, the shift in popularity around legalizing weed and more.
Read on for recent insights into these topics and more, or download our full reports for a deeper dive.
Rising costs are prompting consumers to walk away from food brands

Inflation-weary consumers are fed up and making big changes to accommodate their budgets. For brands, that unfortunately means losing formerly loyal customers. We set out to understand how customer loyalty is shifting and heard one thing loud and clear: everything is too expensive.
When we asked survey respondents to categorize the brands they’ve recently stopped or reduced purchasing from, we saw responses that ran the full gamut of consumer products and services. Food dominated the list, with grocery and restaurant brands tying for first place.
Read more here on how increased costs of living is damaging brand loyalty.
Consumers are increasingly reporting higher grocery prices due to tariffs

42% of adults are “very” concerned about the price of essential products rising due to tariffs. In particular, groceries are the leading concern, and the number of Americans noticing higher prices at the grocery store (79%) has risen relative to last month. The share of U.S. adults concerned over the cost of gasoline, in contrast, fell 5 points relative to July.
Legalized pot isn’t as popular as it used to be

Since 2020, the share of voters who say the use of marijuana should be made legal in the United States has declined from 64% to 57%. The shift was driven in large part by women, among whom support has fallen 10 percentage points (to 53%) as support among men fell only marginally (to 61%). And while the bulk of millennials still support legalized weed, support among that group has dropped faster compared with any other age cohort (from 74% to 62% over the past few years).
Read more in this memo, which includes a look at consumer sentiment around reclassifying marijuana.
Perceptions of poor value for frequently-consumed categories are on the rise

A worrying trend is starting to emerge in Morning Consult brand tracking data: across major categories such as grocery, retail and CPG, more consumers now believe that an aggregate group of brands in each category are a “poor value” in relation to their cost compared to just a few years ago. These shifts aren’t massive, but they are consistent, signaling an erosion in the trust consumers place in brands to justify their prices. Added to this, consumers are concerned about persistent inflation, elevated interest rates, and lingering economic uncertainty. Households are more cautious with spending, meaning consumers are scrutinizing whether their purchases deliver true value.
There is a demographic group that should raise flags for brands in this atmosphere. Gen Zers, a key demographic for many brands in these categories, are more likely than older shoppers in every category to consider brands to be a “poor value”. At least 1 in 5 say brands in grocery, QSR, discount retail, apparel and CPG food are not a good value in relation to their cost.
Read more here about the shifting perceptions of brand value.
Americans are rethinking nightlife, as fewer partake in certain social activities

When asked about the activities they are doing less or more compared to a year ago, a clear pattern emerged: Americans — especially young adults — are ditching traditional nightlife pursuits like drinking and clubbing, and instead embracing wellness-focused behaviors like workout classes. And with self-optimization content perennially popular on social media, this trend is unlikely to slow down anytime soon.
Want more insights? Dive into additional analysis from our team of experts below.
- The Experience Economy Is Resurgent, but Only Among Select Consumers: High earners say they’ve increased their spending on experiences like live events, travel, and dining out in the past year.
- U.S. Consumer Income & Debt Tracker: Our new tracker provides a comprehensive view of American consumers' income and debt sources.
- AI Skeptics: Who Are They and How Can Businesses Earn Their Trust? Companies need to reinforce privacy and customer service to win the trust of consumers who are skeptical of artificial intelligence.

Bobby Blanchard is the senior director of audience development at Morning Consult. @bobbycblanchard