Survey: Consumers trading down, consolidating trips because of fuel costs
Rapidly rising fuel prices are already having an impact on consumer spending.
According to new data from loyalty marketing technology provider Snipp Interactive, 31% of consumers said gas price increases have "significantly" or "extremely" impacted their household budget, while only 13% said they felt no impact at all.
Two-thirds of those surveyed said they have already changed their overall spending habits as a direct result, with 20% making significant changes and 45% making moderate ones.
When asked which spending categories they had cut, dining out led all responses at 63%. Clothing (44.7%), entertainment (43.2%) and travel (38.9%) were the next most common answers. Nearly 36% of consumers said they had reduced grocery spending by trading down or buying less.
The cost cutting comes as gas prices surged to a national average of approximately $3.88–$3.93 per gallon in late March, according to Snipp.
More than half of shoppers said they had changed how often they shop in-store, 29% by consolidating trips and 21% by going less frequently. When it comes to where they shop, the most common adjustment is choosing stores closer to home (26%) to help save on fuel costs, while another 13% have shifted more purchases online. Only 13% have switched to lower-priced retailers outright.
Fuel costs may be top of mind for shoppers as the price at the pump continues to rise, but so are overall prices. More than four-in-10 (46%) shoppers surveyed by Snipp are very or extremely concerned that grocery costs will continue rising over the next six months. Less than 6% said they had no concern at all.
[READ MORE: Study: Prices, focus on health to shape consumer spending in 2026]
“Shoppers who are consolidating trips, trading down, and actively hunting promotions are making calculated decisions at every touchpoint,” said Snipp. “The brands that show up with tangible value i.e. the right price point, the right pack size, the right promotion / offer at the right moment, will hold their ground. The ones that don't will lose share to private labels and struggle to win it back.”
Snipp added that retailers should continue to expand private label assortments, activate loyalty programs, and compete on proximity and digital convenience, while also “capturing food service occasions” as more consumers shift to cooking at home.
Snipp Interactive surveyed 1,000 U.S. adults who regularly shop for groceries for its latest report.
