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Grocery inflation has left a mark on the American consumer, and shoppers are still licking that wound despite observable improvements.

A new report from the Acosta Group found that despite a stabilization of grocery affordability, inflationary buying behaviors are still dominating consumer spending, with shoppers prioritizing value brands and promos far more than they did prior to the rapid onset of price increases between 2021 and 2023.

• In 2020, a standard stock-up grocery basket averaged $288. Today, that same basket is around $366.

However, wages have also increased, and grocery affordability has improved from a 2023 low point despite elevated shelf prices. 

• The median wage in the U.S. has actually outpaced grocery inflation. Median hourly earnings went from $23.93 in 2020 to $30.88 around the beginning of 2026.

Acosta’s main takeaway: “Affordability and shopper behavior are no longer moving in parallel.”

Inflationary spending habits may be here to stay, at least for the time being, presenting a new challenge for retailers and brands in “earning trust and demonstrating value in a marketplace where shoppers have become more intentional, more informed and more discerning.”

Consumers may be willing to splurge, but they need more justification in bigger expenses. That could come in the form of functional benefits or premium positioning, but either way brands will be contending to prove that a higher price tag is worth the while.

While conventional wisdom often views higher promo engagement and price sensitivity to economic woes, Acosta suggests that these behaviors are becoming “more like lasting adaptations to a marketplace in which consumers have become more deliberate.”

Not mentioned in the report, however, are other economic stressors pinching consumers' wallets. 

• While grocery prices may have stabilized, gasoline prices have surged this year after the U.S. attacked Iran, leading to the closure of the Strait of Hormuz.

• Inflation overall has spiked since March, peaking at 4.2% in May and remaining elevated at 3.4% in July.

Read the full story with added context on Nosh

Newly rebranded COZY Foods is raising pre-seed funding this summer to support a shift into co-manufacturing and a broader retail push. Read the story.

Still reeling from its $23.8 million legal defeat to Van Leeuwen last month, Rebel Creamery has filed for Chapter 11 bankruptcy protection. In documents filed in Utah last week, Rebel Creamery declared $23.85 million in debt, naming Van Leeuwen as its largest creditor, while owning total assets of only $13.8 million with about $5.2 million in cash. Read the story.

David Protein is keeping cool this summer with a one-day-only, co-branded protein ice cream cookie offering made in collaboration with Fields Good. The functional desserts, which contain around 20 grams of protein per serving, will only be available for a single day on August 22 at David’s New York City pop-up scoop shop, located in the West Village in Manhattan. Read the story.

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It’s Hump Day! Here’s a taste of the latest marketing moves from around the food industry.

🏈 Mondelēz International entered a multi-year sponsorship deal with the Kansas City Chiefs to serve as the NFL team’s Official Snacking Partner. Learn more. 

🎒 Dr. Praeger's, Bakeful, and Wave Kids are teaming up to launch Better Together, a back-to-school initiative. Check out the details. 

🍌 OREO is launching three limited-edition flavors – Banana Pudding, Deep Fried and Chicken & Waffles – and asking consumers to vote on which one will return to the lineup in 2027. Read the full press release. 

Hungry for more? Access the latest marketing news with Nosh Insider

New York's density makes it one of the best cities to build retail distribution — and one of the hardest to crack. 

Namik Soltan, founder and CEO of GNGR Labs, spent six years self-distributing into hundreds of NYC bodegas, independents, and chains before handing accounts to a distributor. Sean Rosenberg, founder of Goldie, is about to do the same. 

In this episode, Namik shares tips with Sean through the exact playbook, store by store.

Listen here

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