NielsenIQ warns of food insecurity, tariff risk for Puerto Rico in 2025
As Puerto Rico enters the second half of 2025, a new report from NielsenIQ highlights growing financial pressure on local consumers, driven by economic strain, fears over U.S. tariff hikes and increasing reliance on the Nutritional Assistance Program, known by its Spanish acronym (PAN, in Spanish).
The report, titled “Weather the Storm: Navigating the Challenges of 2025 With the Consumer in Mind,” outlines how fragile household finances are reshaping spending habits across the island. According to the study, 31% of Puerto Rican households say they have just enough income to meet basic needs such as food and housing.
Consumers are adjusting with clear strategies: 51% are seeking out promotions and discounts, 44% are cutting nonessential expenses, and 32% are choosing lower-cost or store-brand products.
These changes are reflected in the kitchen, where 47% are cooking at home more often and 43% are eating more leftovers. Snack purchases have declined, with 42% of respondents buying snacks less frequently.
Although inflation has eased since 2023, new threats are emerging. The island remains heavily dependent on imported food, particularly from the mainland United States, making it vulnerable to potential tariff increases. Seventy-three percent of consumers expect tariffs to push local prices higher, and 80% say they want retailers to disclose pricing breakdowns if that happens.
The PAN program — a Puerto Rico-specific version of the Supplemental Nutrition Assistance Program (SNAP) — plays a key role in supporting household spending. More than half of Puerto Rican households receive benefits through the program, which the report describes as having a multiplier effect on the broader economy.
But the possibility of cuts to U.S. SNAP funding has raised concern. Nearly 90% of current PAN users are worried about losing access. If reductions occur, 31% of respondents said they would buy less food, 28% would shop at lower-cost stores and 26% would skip meals. The most commonly cited concerns include insufficient food (28.1%), health effects (13.4%) and increased food insecurity (12.9%).
NielsenIQ’s report also examines the effects of global supply shocks on specific goods. Egg prices in Puerto Rico rose 19% between May 2023 and May 2025 — a smaller increase than the 32.5% seen in the United States. The report suggests this may reflect greater reliance on local production. Still, 65% of consumers reduced or stopped buying eggs during the peak price surge, turning to alternatives instead.
“Puerto Rican consumers have demonstrated a remarkable ability to adapt to economic challenges,” said Tatiana Irizarry-Hilera, sales leader for NielsenIQ in Puerto Rico. “Our data reveals a clear strategy of seeking value and efficiency in their purchases. However, external factors such as tariffs and the stability of the PAN program are critical and require attention.”
The report concludes that manufacturers and retailers operating in Puerto Rico must respond to shifting consumer behavior and prepare for further economic disruption.
