Market Monitor, Issue 01 | 2023

Issue 01 | 2023 allianzgi.com Grassroots Research® Market Monitor Food Inflation – Japan Online Pharmacies – India Independent Rehabilitation Residential Building Trades – UK Solar Panel Demand – Europe Hospitals – China Demand for Garmin Products – US Food Inflation – Japan Grassroots conducted interviews with Price hikes by food and beverage sources at supermarkets and grocery companies typically range from stores in Japan to understand the 4% to 11%. impact on pricing and consumption due 82% who commented said their sales to price hikes imposed by major food volume dropped after price hikes of and beverage companies. food and beverage products, citing Regarding implementation of price consumers decreasing the number hikes, 39% who commented said they of items purchased, choosing less instantly raise prices as soon as price expensive items, and visiting stores less hikes are announced by food and bever- frequently. In addition, 12% who com- age companies, 22% said they raise mented said sales of beer and alcohol item for sources who commented, with prices when existing inventories are dropped because shoppers stocked up 25% each reporting it as both a resilient fully consumed, and 39% said they use before the October 1 price increase, and vulnerable food category. a combination of instantly raising prices while 6% said there was no impact to and absorbing price hikes, rather than sales due to price hikes. having a binary policy of either one. Indeed, 31% of sources who commented When asked about passing on price reported sales of daily necessities such hikes, 36% who commented said they as bread were resilient after price hikes, fully pass on price hikes to consumers, while 19% commented that discretion- another 36% said they use a mix of full ary items including alcohol, beer, coffee, and partial pass on strategies, 14% and tea suffered in sales volume. Instant said partially pass on, and 14% said ramen noodles appeared to be split corporate headquarters decides. between a necessity and discretionary Value. Shared.