Head of Consumer Products at 4C Associates, Katy Gallagher, explores key developments in consumer behaviour that are shifting the strategies of food and beverage companies.
Insights from 4C Associates’ annual food and beverage (F&B) survey show that consumer behaviour has evolved in significant ways over the past four years. While consumers are still conscious of price, it’s no longer the only lens through which a product’s value is judged. Sustainability is now expected, premiums are becoming the norm, and consumers will say a lot about their preferences.
In 2023, we saw consumer purchase decisions being heavily driven by inflation, and in 2024 we saw signs of consumer mindset evolving. This year we see another shift in expectations.
1. Price still matters, but it is losing its importance
While price is still the top factor in purchasing decisions, its influence has declined steadily, from 72% in 2023 to 64% in 2024 and now 60% in 2025. This contrasts with the non-linear path of inflation, where in March 2023 inflation was 19% and fell sharply in 2024, but has risen to 4.5% in June 2025 remaining well above pre-COVID levels.[1] While shoppers aren’t necessarily returning to pre-inflation habits, they are looking beyond the immediate shock of inflation and redefining what “value” means. Rather than paying more, they expect more for the same price.
Today, value is not just about cost, but rather it’s about the full package: taste (the second most important purchase driver), product range, health benefits, and even sustainability. For F&B companies, this change means price alone is no longer enough to win consumers. Brands that can clearly demonstrate these additional attributes without raising costs will be best positioned to retain loyalty.
Achieving this requires driving efficiencies in their procurement and operations to unlock opportunities to manage costs. Redirecting internal savings into product quality, health benefits, and sustainability credentials enables brands to deliver the new baseline of value that shoppers now expect.
2. Premium is the new standard
Unsurprisingly, with consumers now focused on total value, attributes once considered premium are now widely expected. Survey results show that an average of 53% of consumer are unwilling to pay more for these features. Organic produce is particularly under pressure: 51% of consumers say they won’t pay extra, up 9.3 points from 2024, and only 24% are willing to pay even 5% more. Similarly, production factors like lowering carbon emissions and Fairtrade certification are increasingly seen as standard, offering little justification for higher prices that they may have once been able to command.
Consumers expect more for the same spend, which creates added cost pressure and businesses need to re-evaluate how they manage their product portfolio and prioritise investment, ensuring that resources are directed to either reduce the cost of these attributes, or to find and invest in features that do differentiate them in the market with consumers.
3. Getting locked into brands
With consumers demanding more, they’re now seemingly more willing to shift loyalties – 65% of respondents said their preferred brands remained unchanged, down from 73% in 2024, though that was a marked increase from 53% in 2023. This indicates that shoppers are willing to switch brands, for sharper deals or new product innovation suggesting that loyalty is stabilising, but brands still need to actively engage consumers to maintain it.
The data suggests variety is becoming a decisive factor with almost 20% of consumers naming product range as their top purchase driver, highlighting the importance of balancing variety with efficiency, and ensuring the right range is available without overextending. Tools like agile sales and operations planning (S&OP), capacity planning and SKU rationalisation reviews can help brands manage their range strategically while keeping operations lean.
Cost, specialty offers, and travel distance were more dominant in 2023, showing a clear shift toward choice and variety. As budgets ease, shoppers expect newness and choice, not just low prices. Price-sensitive consumers are rewarding brands that refresh or expand their offer, proving that innovation and relevance can help sustain loyalty under cost pressure.
While some FMCG companies are narrowing portfolios to protect margins there is a risk of focusing too heavily on growth opportunities and losing sight of your strategic core. A recent example from the UK plant-based category shows how one brand has avoided expanding endlessly, instead streamlining its range to focus on a subset, in this case, primarily on their vegan frozen lines. By focusing on how to offer innovation at accessible price points they’ve chosen to grow narrowly and strategically without losing their core identity.[2]
4. Value and sustainability: The say-to-pay gap
The say-to-pay gap i.e. the difference between what consumers say they value and what they’ll pay extra for, is continuing to widen across all categories. As highlighted, product traits once viewed as premium, such as organic, plant-based, or high-protein, are now considered standard with little pricing power left. More than half of consumers (62%) will not pay more for high-protein foods, and an even larger share (69%) will not pay extra for low-calorie options.
The same applies to sustainability practices like recyclable packaging and Fairtrade certification are now hygiene factors that shoppers expect at no extra cost. But not all sustainability attributes carry the same weight. For example, 66% will not pay more for low-carbon products, and 73% will not pay extra for low-water-use items. Some abstract or assumed benefits are harder for consumers to connect with and therefore no longer drive additional spend.
However, there are some production traits continue to carry more weight. Hard to replicate initiatives such as regenerative farming, renewable energy use, or other visible sustainability commitments remain credible differentiators. These may feel more tangible to shoppers and offer F&B companies a way to justify a premium in a market where baseline health and sustainability claims are now taken for granted.
So, what do F&B companies need to consider?
Findings from the 2025 Food and Beverage Survey have led to a few key conclusions for F&B companies:
1. Don’t rely on baseline claims to justify higher margins
Organic, plant-based or high protein products are standard features now. Instead of trying to monetise what shoppers already expect, F&B companies should look at harder to replicate value drivers like renewable energy use or regenerative farming, and have a definable value attached to them. These practices bring benefits beyond consumer preference: they build resilience into supply chains, reduce long-term risk exposure, and strengthen consumer loyalty by signalling authenticity and commitment to sustainability.
2. Think strategically about your product range
Variety is rising as a top purchase driver, but expanding too far can dilute brand identity and erode margins. The challenge for F&B companies is to identify and invest in high-potential niches while keeping their core ranges sharp and relevant. Success comes from innovating where it matters most, supported by disciplined approaches such as SKU reviews and capacity planning, so that growth is targeted without losing sight of the products that truly define the brand.
3. Engage loyalty through innovation and relevance.
The majority of consumers sticking to their preferred brands, but it is not guaranteed. Targeted offers remain important, yet the bigger lever is innovation, through new product development, reformulation, or meaningful value-added claims. Brands that align with consumers’ broader definition of “value” (taste, quality, sustainability, and variety) will stay front of mind. Make sure to double down on what consumers keep coming back for to keep your brand in their shortlist.
Looking ahead, the landscape for food and beverage companies will be shaped by consumer preferences but also wider external pressures. Tariffs across key categories like dairy and meat will add volatility to prices, testing consumer tolerance and how adaptable brands can be. If costs rise, brands will need to be able to communicate value clearly through their product range to protect loyalty.
The future consumer will continue to be more demanding, less forgiving, with even higher expectations. The challenge for F&B companies will be to keep up, and those that will be successful will need to design a ‘basket of the future’ – one that accounts for affordability, innovation and quality.
[1] Office for National Statistics
[2] Hain Celestial slims down Linda McCartney’s range in the UK | The Grocer