Kiwis are changing the way they shop as rising costs continue to put pressure on their everyday living.
According to a recent study by Consumer NZ, 82 per cent of New Zealand households say their food budget is under strain, forcing many to change what they buy and how they shop.
“Food is a basic necessity, but for many households it’s getting harder to afford the food they want and need,” said Gema Rasmussen, head of research at Consumer NZ.
The survey found that more than one-third of consumers regularly or very often stretch their food budget. Only one in three households says they have enough of the food they want, while nearly half report having enough food but not the types they would prefer.
Rasmussen said food insecurity is increasingly appearing in the form of compromise rather than outright shortages.
“People may still be getting by, but they’re settling for less, changing what they buy and, in some cases, cutting back on fresh and whole foods,” she said.
Among respondents who changed their grocery shopping habits over the past year, 71 per cent said they were buying more budget or home-brand products, 69 per cent were purchasing fewer premium items, 59 per cent were buying more in bulk, and 30 per cent were buying fewer fresh or whole foods.
The findings also suggest low confidence in government efforts to keep grocery prices affordable, with 67 per cent of respondents expressing little faith in current policies.
“People want stronger action on supermarket pricing and competition,” Rasmussen said.
Consumer support for tougher regulation was strong, with 86 per cent backing an Australian-style rule that would allow supermarkets to be penalised for charging unreasonably high prices relative to supply costs and a fair profit margin.
More than half of respondents (65 per cent) say they don’t trust supermarket pricing and promotions, while 24 per cent believe supermarkets are not transparent about pricing practices.
Nearly one-quarter said they do not believe advertised discounts represent genuine savings.
Beyond price increases, shrinkflation is also fuelling consumer frustration.
The survey found that 72 per cent of respondents have noticed products becoming smaller while prices remain the same, and 75 per cent believe supermarkets are not transparent enough about those changes.
Looking ahead, Rasmussen said Kiwis are seeking stronger action from policymakers in an election year.
“Households are under pressure and want more meaningful action to improve affordability and accountability in the supermarket sector,” she said.
“The grocery market study feels like a distant memory, and we’re yet to see meaningful change at the checkout. It’s no surprise many New Zealanders are fed up.”
