What do fresh fruits, drinks and dairy have in common in September 2022?

A new research from Adapt reveals the basket cost of most commonly purchased grocery products in the USA in September 2022.

Key findings -

#1 - As of September 2022, the grocery basket cost had become more expensive as most of the food companies raised prices and it seems that food inflation is continuing.

#2 - The average basket cost is $258, Target takes the first place of being cheapest grocer to shop with a basket cost of $241 only, and the difference between the cheapest website (Target) and the most expensive (Albertson's) is $37.

#3 - Walmart, Kroger and Hy-Vee had changed prices to more than 50% (!) of the most common products in September '22 compared to August '22. Walmart moved its prices 8% up, on average, while Kroger moved the prices +3% up and Hy-Vee moved the prices +1% up.

#4 - Fresh fruits, meat, condiments, oils, dairy and baking goods categories experienced massive price changes, as 50% to 70% of the category products had changed price in September '22 compared to August '22.

#5 - Products with a more stable demand ( = lower demand elasticity) face more price raises. e.g. drinks.

#6 - The categories that faced the largest price changes were oil, fresh fruits, drinks and dairy with more than +6% price increases on average.

#7 - Not surprisingly, the price raises in less-common products were even higher, about ~13% on average.

Price changes - by company

Most of the food and beverages companies in the USA had changed prices to more than 40% of the most common grocery products in September 2022.

The average change in September 2022 was 4% up, when one can see that Walmart and GiantEagle made the largest change to prices, +9% and +7% respectively.

Price changes - by category

Fresh fruits, condiments, oils, meat, dairy and baking goods categories changed prices for 50% and more of their products.

When one looks at the average price change by category, one can see that almost all categories, except the freezer category, experienced price increases on average.

Oils and fresh fruits categories were with the highest price increases, of +10% up and +7% up respectively. While in the meat category, there was a mix of both price increases and price decreases.

Methodology

The total cost of the basket is defined as the cost required to purchase a basket that includes one unit of each product in the basket. It represents the total cost of the most commonly purchased products for households. The categories that were analyzed are food, cleaning and toiletries.

*If you are interested in the detailed information, or any additional inquiries about this research, kindly email us to research@adapt.online

Anecdotes from this month -

1. Philadelphia cream cheese price jumps by tens of % in price in Walmart, Kroger.
Walmart's private-label cream cheese follows to obtain higher margins.
2. Shoprite runs out of regular size rice grain packages of private label . If you really like their rice, packages of +10 lb are available; or if you plan hosting a large party.
3. Unilever brands excel with amazing availability, and gold-standard aligned product content across all retailers. Predictable pricing, regardless of where you purchase their products. Winning consumers hearts and wallets with punctual digital execution.