16% Price Hike Is the Breaking Point for Consumer Brand Loyalty, New Study Reveals

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5.25.2026

Quick Facts

A 16% price hike triggers consumers to switch brands or reduce purchase volumes, according to new DOSS survey research
60% of consumers abandoned a previously loyal brand this year due to price increases, with 70% reporting less brand loyalty overall
Grocery spending hits hardest with 82% of respondents citing it as their biggest wallet strain, as prices rose 0.7% month-over-month in April

American consumers have reached their breaking point with brand loyalty as inflation continues to squeeze household budgets. New research from DOSS reveals that a 16% price increase is the critical threshold that pushes shoppers to trade down to cheaper alternatives or cut back on purchase volumes.

The survey of 1,010 US adults found that 60% of consumers stopped buying a brand they were loyal to this year due to price increases. Even more telling, 70% said they are less brand loyal now than they were last year.

The financial pressure spans income levels. While Millennial and Gen Z shoppers, women, and low-income consumers are most likely to switch brands, 52% of those earning more than $100,000 annually have also abandoned loyal brands due to pricing.

Grocery shopping bears the heaviest burden. Nearly 60% of Americans now spend more than $150 per week on groceries, with one in four spending over $250 weekly. Among households with multiple children, 52% reported weekly grocery bills above $200, and 10% spend more than $400 weekly.

The shift toward private label products is accelerating rapidly. Zappi research shows consumers buying only brand-name products dropped from 21% to 10% year-over-year. Meanwhile, those purchasing a mix of brand-name and store-brand items jumped 12 percentage points to 66%.

“The findings in Ibotta’s 2026 State of Spend report confirm a critical shift: value isn’t just a trend, but the center of gravity for the American consumer,” said Chris Riedy, Chief Revenue Officer at Ibotta.

Shopping patterns are shifting as consumers hunt for value. Higher prices drove 41% of consumers to shop at discount grocers like Aldi and Lidl more frequently than last year. Additionally, 32% increased visits to dollar stores and 27% shopped more at club stores like Costco and Sam’s Club. Traditional supermarkets saw 38% of shoppers reduce their visits.

The impact varies by category. Consumers dropped brand loyalty most frequently in personal care products (41%), household goods (39%), and dining out (39%). However, groceries remain the category where consumers are most willing to switch brand allegiances.

A 33% price bump represents the average threshold where consumers stop buying a product altogether, the DOSS survey found. Baby boomers show slightly more price sensitivity, making the switch to alternatives at just a 12% increase.

Industry experts warn of a growing disconnect between executive perceptions and consumer reality. Phil Rubin, a customer loyalty expert, noted that 90% of executives believe customers are more loyal, while only 40% of consumers agree. “That 50-point perception gap is the largest I’ve seen in 30+ years doing this work,” Rubin said.

The USDA predicts food-at-home prices will rise 3.2% this year, faster than the 20-year historical average of 2.6%. This persistent inflation creates ongoing challenges for consumer packaged goods manufacturers who face volatile raw material costs while retailers and consumers resist price increases.