A new Consumer NZ survey showed that food budgets are under strain for 82 percent of New Zealand households, and 67 percent have low confidence in government policies to help keep food affordable and accessible.
According to Consumer NZ, the results showed cost-of-living pressure at the checkout has forced many households to change what they buy and how they shop.
“Food is a basic necessity, but for many households it’s getting harder to afford the food they want and need,” said Consumer NZ head of research and advocacy Gemma Rasmussen.
The survey found more than a third of New Zealanders regularly or very often stretch their food budget. Only one in three households said they have enough of the food they want, while nearly half said they have enough food, but not the food they would prefer.
Rasmussen added that food insecurity has increasingly shown up as a compromise.
“People may still be getting by, but they’re settling for less, changing what they buy and, in some cases, cutting back on fresh and whole foods.”
Among those who changed grocery shopping habits in the past year, 71 percent have been buying more budget or home-brand products, 69 percent are buying fewer premium items, 59 percent are buying more in bulk, and 30 percent are buying less fresh or whole foods.
The findings also showed little faith in the current policy response, with 67 percent of respondents saying they have low confidence in the government’s ability to keep food affordable.
“Public confidence is very low, and it hasn’t improved since last year. People want stronger action on supermarket pricing and competition.”
Eighty-six percent support an Australian-style rule allowing large supermarkets to be penalised for charging unreasonably high prices relative to supply costs and a fair profit margin.
Rasmussen added that concern about supermarket pricing remains widespread.
“Only 35 percent say they have high trust in supermarket pricing and promotions, and 24 percent don’t think supermarkets are upfront about them. Nearly a quarter don’t believe discounts represent real savings.”
Shrinkflation has also remained a source of frustration. Seventy-two percent of respondents noticed products getting smaller without a matching price drop, and three-quarters say supermarkets are not transparent enough about shrinkflation.
Rasmussen added that the message from consumers is clear in an election year:
“Households are under pressure and want more meaningful action to improve affordability and accountability in the supermarket sector,” said Rasmussen.
“The grocery market study feels like a distant memory, and we’re yet to see meaningful change at the checkout. It’s no surprise many New Zealanders are fed up.”
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