Only one in eight Belgians thinks that the inflation and energy crisis will end soon. There are huge cuts in the supermarket.
Half of Belgians are preparing for a protracted crisis. They expect that the economic situation will not have normalized by the end of 2024. The share that already predicts the end of the crisis next summer is only 13 percent. This was stated by a study by the communication agency BBDO Belgium. The agency has questioned about a thousand Belgians about their purchasing power, who together serve as role models for Belgian society.
Gloomy expectations are reflected in consumer behavior. Six out of ten Belgians have started buying more house brands instead of A-brand products due to inflation. The popularity of private labels has already increased reported by the same supermarket chains. They encourage the phenomenon by placing emphasis on low-priced products in their advertising. This is happening even now, in view of the Christmas period. Just last month, Delhaize reported that sales of low-priced products advertised as “little lions” increased by 15%.
Branded beer remains popular
The BBDO survey shows that private label is the most popular for dairy products such as milk and yogurt. Two thirds of consumers choose it. Then comes the pasta, water, biscuits and cheese. When buying washing products, soft drinks and chocolate, an A brand is chosen even more often.
Beer is where house brands are least popular. If so, only 7% of consumers opt for a private label. Of respondents, 90 percent say they won’t return to an A-brand for at least one category, even when the period of high inflation is over. Half of consumers say they will spend less money on food by the end of the year.
Not everyone is equally affected by the impact of inflation on purchasing power. This is confirmed by the results of the BBDO survey. Women, people with low or middle incomes, and the elderly report being affected more often than others. In Wallonia, more people feel a strong impact than in Flanders. Only 5% of Belgians feel little or no impact.
