A new Consumer NZ survey shows food budgets are under strain for 82% of New Zealand households, and 67% have low confidence in government policies to help keep food affordable and accessible.
Consumer NZ says the results show cost-of-living pressure at the checkout is forcing 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,” says 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 say they have enough of the food they want, while nearly half say they have enough food, but not the food they would prefer.
Rasmussen says food insecurity is increasingly showing up as 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% are buying more budget or home-brand products, 69% are buying fewer premium items, 59% are buying more in bulk and 30% are buying less fresh or whole foods.
The findings also show little faith in the current policy response, with 67% 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,” says Rasmussen.
86% 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 says concern about supermarket pricing remains widespread.
“Only 35% say they have high trust in supermarket pricing and promotions, and 24% don’t think supermarkets are upfront about them. Nearly a quarter don’t believe discounts represent real savings.”
Shrinkflation also remains a source of frustration. Seventy-two percent of respondents say they’ve noticed products getting smaller without a matching price drop, and three-quarters say supermarkets are not transparent enough about shrinkflation.
Rasmussen says 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.”
“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.”
