Strained by tighter budgets and rising prices, more shoppers are ditching their favorite brands for cheaper alternatives, according to a new survey.
In a survey of over 1,000 Americans by DOSS, 60% said they have dropped a previously loyal brand due to price increases. On average, a 16% price hike was enough to push consumers away, with the median being a 10% increase.
Younger, female, and lower-income shoppers were most willing to switch. 61% of Gen Z and Millennials reported dropping a brand, compared to 58% of Baby Boomers and 57% of Gen Xers. Women (62%) were more likely than men (56%) to switch, along with 62% of those earning under $25,000 versus 52% of those earning $100,000 or more.
Among those who switched, 76% did so for groceries, 41% for personal care, and 39% for household goods or dining out. After dropping their go-to brand, 53% turned to generic versions, 52% opted for cheaper name brands, and 48% chose private labels. Another 41% stopped buying the product type altogether.
Inflation is hitting hardest at the grocery store, with 82% citing it as the category with the biggest increases. 76% said gas and fuel costs surged, while 46% pointed to rising utility costs. To cope, 62% cut back on dining out and takeout, 48% on vacations, and 47% on entertainment and concerts.
“Overall, consumers are becoming significantly more intentional when it comes to their discretionary spending,” said Sebastiaan Debrouwere, DOSS vice president.