Navigating Economic Uncertainty in 2025
As 2025 unfolds, the American shopper is navigating a landscape shaped by inflation, price volatility, and ongoing economic uncertainty.
With headlines dominated by rising costs and cautious consumer spending, grocery shopping habits have become a key reflection of broader sentiment. Are consumers cutting back? Are they opting for cheaper products? Are younger shoppers behaving differently than older generations?
To answer these questions, Chicory surveyed 1,000 U.S. consumers (500 Gen Z and 500 non-Gen Z) to better understand how economic conditions are shaping the way people shop for groceries, cook at home, and discover new products.
Here are three key insights from our latest report, Navigating Economic Uncertainty: What Grocery and CPG Advertisers Need to Know.
Takeaway 1: Shoppers Are Becoming Strategic, Not Just Frugal
Consumers in 2025 aren’t just spending less, they’re shopping smarter. In response to inflation and economic uncertainty, they’re recalibrating how they approach every trip to the grocery store.
From switching to store-brand staples to planning meals around online recipes and embracing “fakeaway” cooking at home, shoppers are optimizing for long-term efficiency and flexibility, not just short-term cost cuts.
This shift shows up across generations, but is especially pronounced among Gen Z. Over a third (34%) have reduced their grocery budgets, and many are turning to meal prep, frozen meals, and budget-friendly pantry staples to stretch their dollars strategically.
We’re already seeing impacts of this cost-conscious mindset when it comes to lunch. In 2024, lunch purchases from restaurants dropped 3%—falling below even 2020 levels. Meanwhile, 71% of consumers say they’ve resolved to bring lunch from home more often.
For brands, this presents a powerful opportunity: position your products as convenient, helpful solutions that help consumers do more with less. Whether it’s highlighting multi-use ingredients, communicating long-term value, or showcasing budget-smart recipes, the brands that show up with solutions—not just discounts— will earn trust and consideration during this period of heightened price sensitivity.
Takeaway 2: The Rise of “Fakeaway” Cooking
Another powerful opportunity lies in how consumers are recreating comfort at home. With 71% of Gen Z and over half of all shoppers saying they’ve tried “fakeaway” cooking (recreating takeout meals at home), brands can reach shoppers looking to keep familiar flavors top of mind.
Think of restaurant-style sauces, spice blends, or frozen products that elevate a basic meal into a special occasion.
By showing how your product transforms everyday recipes into something memorable, brands can tap into the emotional side of cost-conscious cooking, sharing their products in an integrated, helpful manner.
Takeaway 3: Where Shoppers Are Cutting First
Proteins are rising in popularity. Protein usage is up YoY since 2022, and brands like Tyson have reported major growth in poultry, especially.
Premium proteins, however, are seeing the impacts of shifting economic sentiment. 77% of shoppers say they’re buying less meat or switching to more affordable options like tofu, beans, or cheaper cuts.
This all signifies that while consumers aren’t necessarily scaling back on protein as an overall category, they’re getting more creative and flexible with the proteins they select.
Chicory’s network data confirms this sustained interest, with protein recipe searches surging more than 450% in January compared to December.
The same holds true for alcohol. When asked whether they have changed their alcohol purchasing habits due to economic conditions, 49% of respondents say they’re buying less alcoholic beverages or switching to more affordable/private-label brands.
Conclusion: Reach Shoppers with Relevance
This year, the path to purchase is being reshaped by caution, creativity, and consumer control.
Shoppers are making deliberate choices driven by value, but defined by more than just price. They’re shopping smarter, planning budget-friendly meals around online recipes, and trading down when needed. Inspiration, trust, and convenience are still priorities along the way.
For CPG brands, the opportunity lies in showing up with solutions that feel helpful, not just affordable. Brands that align with real shopper needs—through contextual inspiration, multi-use products, and budget-friendly swaps—can earn loyalty, even in a price-sensitive environment.
Want to read the full report? Download it for free today here!