Consumer trust in business August 2022

Summary

• Consumer trust in business has fallen widely as prices have risen across the economy.
• Trust in energy companies has collapsed, reaching a record low of -42, but even the most trusted businesses have suffered. Though still high, trust in the food and groceries sector has also suffered amid the cost of living crisis, falling to +40 from +58 a year ago.
• Trust in the airline and holiday operators sector has fallen to -12, back to the same level seen at the start of the Covid-19 pandemic in May 2020 and down from +4 at this time last year.

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Trust levels fall in several industries

Trust in the energy sector fell to a new low this quarter, with just 16% of consumers saying they trust the sector to act in their best interests, and 58% saying they do not trust the sector, giving a net trust level of -42. This is the lowest trust level recorded since we began collecting this data ten years ago. Trust in energy has fallen dramatically over the last year and is now much lower than in nearly any other sector. 

The food and groceries industry remains one of the most trusted, but this has also fallen over the past year and is now at +40 compared to +58 a year ago. Trust in food and groceries increased significantly during the pandemic, but has been falling over the last year, and is now below pre-pandemic levels.

These drops in consumer trust come at a time of very high inflation, with major price increases in both the energy and food sectors. These price increases are likely having an effect on consumer trust. Research conducted by YouGov on behalf of Red Tractor recently found a reduction in trust in British food, with many who have switched to lower cost ranges believing that these are produced to lower safety standards. 

Consumers may also believe that businesses are raising prices more than is necessary or fair, as suggested by our own analysis of trust in the energy market in May and by evidence from other organisations.

The decline in trust is particularly acute in train companies (down to +1 from +19 in May) and in the airlines and holiday operators (down to -12 from +1). Both sectors have experienced specific problems that might have caused this. Train companies have been subject to repeated strikes by their staff, while there have been widespread issues of delays and cancellations at many airports across the UK this year. Trust in airlines and holiday operators has fallen to the same level seen in May 2020, when flights and holidays were cancelled due to the pandemic and many consumers were awaiting refunds.