NielsenIQ: Inflation, tariffs reshape Puerto Rico’s consumer habits
NielsenIQ’s latest analysis of Puerto Rico’s economic and consumer landscape shows that persistent inflation, import tariffs and shifting household priorities are reshaping how families spend and save.
The report, “Weather the Storm: Navigating the Challenges of 2025 With the Consumer in Mind,” highlights how Puerto Ricans are adapting to an environment marked by rising costs and economic uncertainty.
According to the study, the contraction of the U.S. economy during the first quarter of 2025, coupled with sustained inflation, has intensified consumer pressure.
“Consumers perceive higher prices, resulting in more frequent bargain hunting and a marked reduction in nonessential purchases,” the report said.
Shoppers are cooking more at home, stretching leftovers and demanding greater price transparency from brands.
NielsenIQ found that Puerto Rico’s reliance on imported food — 85% of what it consumes — leaves the island especially vulnerable to price shocks. Recent changes to the Supplemental Nutrition Assistance Program have also strained households, affecting 721,000 families, 68% of whom live below the poverty line.
Among the findings: overall consumer prices rose 1.9%, while childcare products jumped 18.6%, hitting young families particularly hard. The study also pointed to global market shifts, with U.S. manufacturers losing share to Canadian and Mexican competitors. Local retailers, it said, are responding with value-driven pricing and smarter distribution strategies.
“The economic storm and changes in consumer behavior demand a more empathetic and transparent approach,” said Tatiana Irizarry, NielsenIQ’s commercial leader in Puerto Rico. “Success for 2025 and beyond will lie in companies’ ability to build trust and offer genuine value.”
NielsenIQ recommended that businesses strengthen resilience by shifting from transactional to empathic relationships with customers. Suggestions include fair pricing, curated product assortments that reflect local realities, and transparency about price adjustments and product origins.
The report also underscored digital innovation as a tool to expand private labels, support local offerings and promote products tied to health and value.
