Report: Consumers want more than low prices, are ‘more discerning’

Inflation has caused consumers to be more price focused, but a new report from Deloitte found that consumers are moving toward brands that offer “more value for the price.”

The study revealed that while value and price are linked, between 10% to 40% of consumer perceptions of a brand’s value stem from factors other than price.

“Brands that provide extra value have higher purchase intent and are growing consumer share over time,” according to the Deloitte report.

The report notes 40% of survey respondents identified as value seekers. Of these consumers, almost two-thirds are cooking more meals at home, and 53% are purchasing cheaper ingredients. The report found that 59% are switching to store brands or private labels, which is about 10 times the rate of non-value seekers. When eating out, 40% of this value-seeking group prefer restaurants offering promotions.

Deloitte notes that while 40% of value-seeking consumers are in lower-income brackets and are middle-aged, 25% of them earn more than $200,000 annually. Higher-income households also plan to spend up to 60% less in many discretionary categories compared to their peers, the study noted.

Deloitte also found that around 50% of value-seeking consumers intend to spend less on personal care, household goods, home furnishings and entertainment in the back half of 2025. The group said they will allocate a great percentage of their budget to essentials like housing and transportation.

“Consumers are more discerning than ever, weighing the value they receive with their purchases,” said Mike Daher, Deloitte vice chair and U.S. consumer industry leader. “As economic uncertainty lingers, consumers across demographics actively seek brands that deliver value, whether through quality, trust, friendly attitudes, or a combination thereof. No matter the industry sector, MVP brands that get pricing right and boost consumer perceptions of their value will be well positioned to attract consumers, increase their margins, and build long-term loyalty.”

Value seekers also are looking for quality and reliability in addition to price. When shopping for grocery and restaurant options, quality and service rank with price and delivery speeds, the report noted.

Dahert said it’s no longer about “cheap” but more about “worth” as consumers are defining value beyond the price tag. The report found that up to 40% of what drives perceived values stems from non-price factors like quality, trust and experience. This indicates value-seeking is more about feeling that a purchase is well worth the price.

Deloitte also found all generations are engaging in value-seeking behaviors with 49% of Gen X (ages 44-59), 43% of Boomers (ages 60 to 79), 40% of Millennials (ages 29 to 44) and 44% of Gen Z (ages 13-28) identifying as thrifty shoppers.

Researchers said the survey results come as the Conference Board’s Consumer Confidence Index fell to 93.0, down from a 98.4 reading in May.

“Consumer confidence weakened in June, erasing almost half of May’s sharp gains,” said Stephanie Guichard, senior economist, global indicators at The Conference Board. “Consumers were less positive about current business conditions than in May. Their appraisal of current job availability weakened for the sixth consecutive month but remained in positive territory, in line with the still-solid labor market.”

The three components of the Expectations Index — business conditions, employment prospects, and future income — all weakened in June, noted Guichard.

“Consumers were more pessimistic about business conditions and job availability over the next six months, and optimism about future income prospects eroded slightly,” she said.