As we are hot (literally) in the summer months, inflation and tariffs are reshaping consumer spending in visible ways. At a recent poll, we gathered responses from over 7,000 US consumers. Results indicate that 58% are already feeling the strain of rising prices, with 46% adjusting their habits to keep up. From favoring lower-cost brands and seeking deals at discount stores to postponing larger purchases, affordability is taking center stage. This analysis illustrates the ripple effects of economic challenges on essential spending, summer activities, and travel choices, offering valuable direction for brands and retailers aiming to meet consumer needs.
Impact of Inflation and Tariffs on Consumer Behavior
Inflation and tariffs are significantly influencing consumer behavior, reshaping how Americans shop, save, and spend. Our survey reveals that 46% of shoppers have already modified their habits in response to rising costs. Among this group, 66% are switching to cheaper or generic brands, 53% are relying more on discount stores, and 48% are delaying major purchases. These shifts are reflective of broader economic concerns as households strive to stretch budgets without sacrificing quality or essential goods.
This value-driven behavior highlights a prioritization of necessities over discretionary items. With inflation impacting everyday essentials like groceries and personal care items, consumers are trading down to more affordable alternatives, including store brands or secondhand products. Economic uncertainty, combined with tangible price hikes in local stores, has prompted shoppers to adopt a more cautious approach to their spending.
Beyond individual products, consumer sentiment shows a deeper concern about rising costs across categories. Grocery items (84%), personal care products (47%), and clothing and accessories (37%) top the list of goods impacted by inflation. These figures emphasize that brands and retailers must be prepared to address this heightened price sensitivity through competitive pricing strategies, accessible alternatives, and targeted promotions.
Essential Spending Trends: Groceries and Everyday Items
The survey identifies groceries and everyday essentials as the top category where consumers are feeling the pinch of inflation. With 84% of shoppers expressing concern over price hikes, this area has become a focal point for households grappling with higher costs. For brands and retailers in the grocery and personal care sectors, the message is clear: affordability and quality are key.
Consumers are increasingly opting for generic or store-brand products, reflecting their need for cost-effective solutions without compromising on quality. For retailers, this shift underscores the importance of maintaining a robust inventory of affordable alternatives while ensuring the quality and consistency of these products. A strong emphasis on promotional pricing and loyalty programs can further strengthen customer relationships during this period of economic sensitivity.
Additionally, competitive pricing is no longer optional; it is a necessity. Groceries are essential purchases that cannot be delayed or avoided, making consumers hyper-aware of pricing structures. Brands should also consider bundling strategies to create greater perceived value. For example, offering multi-pack discounts on everyday essentials can help reinforce the idea of savings and incentivize bulk purchases.
Summer-Specific Spending Adjustments
Summer 2025 is shaping up to be a season of scaled-back spending as families navigate rising costs. According to our survey results, 47% of consumers report that higher food prices are affecting their ability to host barbecues, picnics, and other summer gatherings. Similarly, 62% of shoppers are purchasing fewer items for home improvement or gardening projects, and nearly half (49%) are trading down to inexpensive or secondhand options for seasonal goods like patio furniture and barbecue equipment.
For brands catering to summer-related categories, this data highlights the importance of adapting strategies to align with consumers’ financial constraints. Discounted bundles for barbecue essentials, affordable garden tools, and promotions on outdoor furniture can help drive sales while addressing consumers’ need for cost-effective solutions. Seasonal messaging should emphasize the idea of maximizing enjoyment without overspending, a narrative that resonates with price-sensitive shoppers.
Travel Behavior and Loyalty Program Insights
Travel plans for summer 2025 are also being reshaped by inflation and tariffs. 30% of consumers are opting for staycations, visiting nearby destinations to minimize expenses. Meanwhile, 38% are choosing budget-friendly travel plans, indicating a clear preference for cost-conscious vacation options. Among those surveyed, loyalty programs and discounts have emerged as key decision-making factors, with 46% rating them as important and 42% considering them extremely important.
For travel and hospitality brands, these findings underscore the need to prioritize affordability and incentives. Discount packages, loyalty rewards, and flexible pricing models are essential tools for attracting customers during this financially constrained summer season. For instance, offering reduced rates for group bookings, family packages, or mid-week stays can encourage travel while staying within consumers’ budgets.
Staycations also present a unique opportunity for brands to market local experiences. Promoting affordable nearby attractions, community events, and day-trip packages can help capture consumers who prefer to stay closer to home. Emphasizing low-cost activities like hiking trails or museum visits further aligns with the 76% of travelers opting for free or low-cost entertainment.
In addition, loyalty programs should be positioned as a cornerstone of travel-related marketing efforts. Personalized rewards, tiered discounts, and exclusive perks for repeat customers can help strengthen engagement and maintain customer retention in a competitive environment.
Practical Tips for Brands and Retailers
Our findings offer valuable lessons for brands and retailers aiming to navigate the summer 2025 landscape. To succeed in a price-sensitive market, companies must adapt their pricing, promotions, and messaging strategies to align with consumers’ heightened focus on value.
Conclusion and Final Recommendations
The summer of 2025 presents unique challenges for brands and retailers as inflation and tariffs reshape consumer spending behaviors. The survey highlights key findings, including the widespread prioritization of essential goods, reduced discretionary spending, and heightened price sensitivity. As nearly half of shoppers actively change their habits—switching to cheaper brands, shopping at discount stores, and delaying purchases—brands must respond with strategies that emphasize value and affordability.
From groceries and personal care items to summer activities and travel plans, consumers are looking for ways to make their budgets stretch further. Loyalty programs, bundled deals, and affordable alternatives are no longer optional; they are critical for success in a competitive and economically sensitive market.
For brands and retailers, the path forward lies in recognizing the need for financial prudence among shoppers and adapting offerings accordingly. By prioritizing value, leveraging promotions, and maintaining consistent product quality, companies can build trust and thrive in this challenging environment. This summer, delivering affordability without sacrificing quality will be the cornerstone of a winning strategy.
In closing, brands that align with the Value-Driven Spending trend and actively address consumer concerns about inflation will position themselves for growth. The key to success lies in understanding shoppers’ motivations, responding to their needs, and creating a narrative of trust, savings, and satisfaction.
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