Stockouts are \a concern for many consumers

Stockouts are a concern for many consumers

Consumers are concerned they will not be able to obtain the products they require or want

Given the unreliability of supply chains, many consumers today are still concerned about the medium-term availability of essential products such as food and prescription and over-the-counter medication. In November 2022, 41% of consumers said that they were highly concerned regarding the potential unavailability of groceries and food supplies, and over one-third (35%) voice the same concerns in relation to prescription medication (see Figure 10).

More than one-third of consumers across all age groups are highly concerned regarding the availability of essential products such as groceries and food (44% Gen Z; 45% Millennials; 42% Gen Z; and 35% Boomers). Consumers in the US (50%) and Spain (48%) are also highly concerned regarding the availability of groceries and food supplies. Gen Z consumers, however, are more concerned regarding the availability of non-essential products than other generations. For example, 23% of Gen Z consumers are highly concerned about the availability of luxury products and 25% are concerned about furniture, compared to 9% and 10%, respectively, of Boomers.

41%

of consumers say that they are highly concerned about potential unavailability of groceries and food supplies

Figure 10. Consumers are most concerned about the unavailability of essential products

^{Source: Capgemini Research Institute, Consumer demand survey, October–November 2022, N=11,300 consumers.}

If favored brands are out-of-stock, consumers will turn to alternate brands

In the event of a preferred product becoming unavailable, most consumers (58%) prefer to buy a similar product from a competing brand; additionally, 52% say that they have bought an item of the same weight/size made by a different brand, at a lower price (see Figure 11).

Figure 11. More than half of consumers will buy a different brand or alternate product in the case of a stockout

^{Source: Capgemini Research Institute, Consumer demand survey, October–November 2022, N=11,300 consumers.}

Consumers will shift stores/brands if essential products are unavailable

In the case of a stockout of essential products, the vast majority of consumers will switch stores or find substitutes for these products (see Figure 12). For example:

Groceries and food supplies (e.g., coffee, chicken, bread, baby formula): In November 2022, nearly half of consumers (48%) said that they would buy a substitute for their preferred item and nearly 40% said that they are more likely to switch stores or online sites to look for products in the first instance of a stockout. This behavior remains consistent during the second and third instances of them being unable to find their preferred product.
Prescription medication: Consumers’ behavior remains consistent in relation to prescription medication. Over one-third (37%) say that they buy a substitute for their preferred item and 44% say that they are more likely to switch stores or online sites to look for the medication during the first instance of a stockout. This trend remains constant during the second and third instances that they cannot find their prescription medication.

Figure 12. Consumers buy substitutes or switch stores/online sites to look for essential and healthcare products

_{^{Source: Capgemini Research Institute, Consumer demand survey, October–November 2022, N=11,300 consumers. Note: Question asked was "How do you react if the product that you are looking to buy is out of stock three times in a row? Please select your reaction during the 1st, 2nd, and 3rd instances when a product you want to buy is unavailable or out of stock." Substitution is defined as purchasing a smaller or bigger size of the same brand, or purchasing the same product from a different brand.}}

Most consumers will abandon their efforts and decline to buy non-essential products

For non-essential and luxury items, more than 60% of consumers say that they will not purchase the desired product if it is not available during the first, second, and third instances of a stockout. Around half of consumers say the same for purchases of furniture and furnishings for all three instances of a stockout (see Figure 13). This is consistent for all other non-essential product categories in our survey, including home-improvement supplies, consumer electronics/white goods, and apparel and accessories, with at least one-third of all consumers saying they will not purchase the product.

60%

of consumers say they will not purchase the desired luxury item if it is not available during the first instance of a stockout

Figure 13. Most consumers prefer not to purchase non-essential products if unavailable in their usual outlet

_{^{Source: Capgemini Research Institute, Consumer demand survey, October–November 2022, N=11,300 consumers.}}
_{^{Note: Question asked was "How do you react if the product that you are looking to buy is out of stock three times in a row? Please select your reaction during the 1st, 2nd, and 3rd instances when a product you want to buy is unavailable or out of stock." Substitution is defined as purchasing a smaller or bigger size of the same brand, or purchasing the same product from a different brand.}}

Many consumers want both sustainability and affordability

More than half (54%) of all consumers globally say that they value affordability over the sustainability of the product when making purchasing decisions. This trend remains constant across all age groups (see Figure 14). Importantly, this suggests that 46% of all consumers globally disagree with the statement or are neutral, meaning many consumers are still being influenced by sustainability, even during the cost-of-living crisis.

Many consumers want both sustainability and affordability

54%

of consumers say that they value affordability over the sustainability of the product when making purchasing decisions

Figure 14. Only about half of consumers say they value affordability over sustainability

Forty-one percent of consumers globally say that they are willing to pay more for a product they perceive to be sustainable. Slightly more Millennials (49%) and consumers with children in their households (48%), and only 34% of Boomers say the same (see Figure 15). In our 2020 research on sustainability in consumer products and retail, 57% of consumers said they had paid higher-than-average prices for products that they perceive as sustainable.¹⁸

_{¹⁸ Capgemini Research Institute,}_{How sustainability is fundamentally changing consumer preferences}_{, June 2020.}

Figure 15. Less than half of all consumers say they are willing to pay more for a sustainable product today

^{Source: Capgemini Research Institute, Consumer demand survey, October–November 2022, N=11,300 consumers; 992 Gen Z consumers, 3,264 Millennial consumers, 3,332 Gen X consumers, 3,712 Boomer consumers; 3,719 consumers with children in their household, 7,582 consumers without children in their household; 4,891 urban consumers, 4,756 suburban consumers, 1,654 rural consumers.}

41%

of consumers say the are willing to pay more for a sustainable product

In November 2022, 59% of consumers globally said that sustainable products need not be costlier than non-sustainable products, down from 72% in November 2021 (see Figure 16). In addition, over half (54%) of all consumers also mentioned they forgo purchasing organic products in favor of lower-priced non-organic products today.

Figure 16. Fewer consumers than last year believe sustainable products need not be more expensive

^{Source: Capgemini Research Institute, Consumer demand survey, October–November 2022, N=11,300 consumers; Capgemini Research Institute, The great consumer reset: COVID-19 and the consumer products and retail consumer, November 2020.}