Three quarters of shoppers who have made changes to their food and grocery shopping due to the recession say that they will stick with their new habits even when the economy recovers. New shopper loyalties are emerging as food retailers and manufacturers engage in an intense ‘contest for value.’

Joanne Denney-Finch, Chief Executive, IGD said: “As shoppers increasingly scrutinise every penny they spend they are shopping around more, wasting less, seeking out promotions, planning meals better and taking their time to find the best deals.

“In such a vibrant marketplace, in which new shopper loyalties are emerging, UK retailers and food manufacturers are responding very rapidly to the challenges presented by the recession. They are each vying to excel at delivering value – and the most effective are reaping the rewards.”

Research released by international food and grocery expert IGD highlights a number of winners emerging:

Brands with a strong heritage have a number of consumer trends in their favour.

44% of shoppers say that a major strength of brands is their reliable “taste and quality”

27% particularly favour brands because they have “grown up” with them

Investment in the quality and variety of supermarket own-label is paying off.

66% of shoppers say that they have seen an improvement in the quality of own-label over the past two years

Shoppers are visiting discount supermarkets (eg, Aldi, Lidl, Netto) more often.

From a small base (representing about 6% of the grocery market in the UK) discounters have an opportunity to grow, with 23% of shoppers saying that they would start shopping, or shop more, at a discount supermarket if there was one convenient to where they live or work

An IGD survey of 120 food and drink manufacturers found that they are responding decisively to changing shopper trends. For example:

47% are putting a strong emphasis on price and value through advertising and communications activity

47% are focusing on brand values in their communications

43% have increased promotional activity

42% have changed pack sizes in response to consumer trends

Joanne Denney-Finch concluded: “Almost a third (31%) of people have yet to make major changes to their grocery shopping during the recession but expect to if conditions worsen. So there could be further transformation ahead with a great deal still to play for.”