Here’s how consumers are responding to economic uncertainty
U.S. consumers are cutting spending in response to inflation and tariffs but are not totally pessimistic in their outlook.
The "2025 State of the Shopper Survey" from Acosta Group shows overall consumer sentiment declined this year by 30% through April 2025. Six-in-10 respondents say they are more worried about rising prices than they were six months ago, especially when it comes to food and grocery costs.
[READ MORE: 85% of global consumers worried about grocery prices]
Most respondents say they have not seen any price reductions in the past six months. Nearly 30% report shopping more frequently at discount grocery or dollar stores, and more than 25% say they are visiting specialty grocers less often due to personal financial constraints.
Traditional grocers remain the top channel of choice for food shopping among respondents at 78%, followed by mass retailers at 64%, and discount retailers at 39%.
Although growth in private label unit share has slowed since mid-2023, nearly half of respondents (48%) now say they choose store brands because they want to – not because they have to. In contrast, only 16% of respondents cite financial necessity as the main reason for choosing store brands.
Tariff concerns
Respondent concerns are highest for tariffs on food and beverages (60%), apparel (42%), and major goods like cars (52%), and electronics (51%). Gen Z is the most optimistic generation when it comes to tariffs, with 45% expecting positive outcomes from them over the next three-to-five years.
However, 62% of all respondents worry that tariffs may lead to a recession in 2025, with that concern rising to 70% for millennials.
Discretionary spending continues
Among respondents with a more pessimistic view of their personal financial situation, a majority have already reduced discretionary spending on items like dining out (80%), travel (69%), and major purchases (65%).
However, respondents in general continue to prioritize indulgences. Dining out, while impacted, is still the top "splurge" for 66% of shoppers.
Shopper outlook
Looking at respondent attitudes toward their household debt, job security, family finances and stress situations, the survey found:
- Household debt – Excellent/good 56%, OK 26%, Poor/terrible 19%.
- Job security - Excellent/good 52%, OK 33%, Poor/terrible 15%.
- Family finances - Excellent/good 47%, OK 34%, Poor/terrible 19%.
- Stress level - Excellent/good 41%, OK 34%, Poor/terrible 25%
"The latest findings underscore shoppers' seemingly conflicted opinions regarding concerns about the economy, tariffs, and their own financial stability," said Kathy Risch, senior VP, shopper insights and thought leadership, Acosta Group. "After the pandemic and five years of inflationary concerns, shoppers have clearly adopted new behaviors. They've become accustomed to cutting back on spending, shopping across channels for deals, and splurging, thoughtfully, on those indulgences that are most meaningful."
The Acosta Group "2025 State of the Shopper Survey" was conducted April 25 – 29, 2025, with 792 adults who are part of the company's proprietary Shopper Community. The Acosta Group Shopper Community is comprised of over 40,000 demographically diverse shoppers across the U.S. and is the company's proprietary community for survey engagement.
