Inflation will cause consumers to cut back on discretionary spending with dining out at the top of the list, according to a report released April 21 by First Insight. Forty-two percent of respondents said they will save money by not eating out as much.
Cutting back on entertainment was second at 33%, followed by reducing purchases of organic or premium groceries and cutting down on vacation and travel, both at 30%. Twenty-six percent said they would cut back on purchasing specialty coffee and beverages.
Saving money by reducing costs for pet services ranked last at 16%.
“The effects of the pandemic are still driving consumers’ spending priorities today,” said Greg Petro, chief executive officer of First Insight, Warrendale, Pa. “With pandemic restaurant closures followed by limited re-openings because of the Great Resignation, dining out has become much less of a habit for many consumers today.
“At the same time, millions of pets were adopted during the pandemic, and consumers have decided that the happiness of their pets is far more important to them than eating out. These shifts in consumer spending will continue to evolve for the next several years, disrupting many industries in profound ways.”
The report was based on 1,000 consumers contacted by email. First Insights offers predictive tools for retail, consumer products, services, wholesale and experience management.