• by Karlene Lukovitz  @KLmarketdaily, September 9, 2008

Nearly half (44%) of U.S adults report that their diets are becoming less healthy as food prices rise, 52% are buying fewer organic products, and 48% are spending less on health and wellness overall, according to a new study from cultural trend tracking firm Faith Popcorn's BrainReserve.

Research firm Sonar surveyed 1,011 consumers online between May 29 and June 6, 2008, using its national panel of 50% men and 50% women over 21 years of age, for BrainReserve's "Culture of the Recession" survey. BrainReserve then analyzed the results against 17 cultural trends that it regularly monitors.

Like other surveys of late, the results confirm that Americans are cutting back on everything from food and beverages to out-of-home eating/entertainment to day care.

Consumer electronics, including flat-screen TVs and video games, seems to be one of the very few category that has benefited as consumers become even more entrenched in cocooning to save money (43% report spending more on their homes, with consumer electronics on the top of the list), Popcorn points out.

Two-thirds (66%) of respondents report cutting back on overall spending, and 84% report making changes such as reducing shopping trips. Fully 90% of women and 79% of men (84% overall) report "buying less stuff," and 90% report that they are considering opting for a simpler life.

"The overwhelming reaction is to pare down, to simplify"--an intensification of BrainReserve's "cashing out" cultural trend, Popcorn says.

"Price increases have a straight-line impact on spending and we're treading in lethal waters as the costs of basics jump 10, 15 or 20%," she adds. "There's very little that's safe in commerce today, beyond value channels and value brands in staple categories."

For example, if soda, juice and bottled water prices increase 20%, 70% of adults say they will reduce their purchases, 58% say they'll switch to private-label brands, and 36% say they will eliminate the category completely. A 20% price hike for milk would make 44% cut back, and a 22% hike would cause 25% to stop buying it.

A 20% increase in the cost of apparel would result in cutbacks by 73% of adults, and such a price hike for movie tickets would cause 74% to cut back and 44% to stop going to the cinema.

Other highlights:

• 42% report having given up some of their favorite brands between last December and this May.

• Half report buying more private-label products during that six-month period, and 24% say they now buy private-label brands virtually every time they shop (compared to 19% in 2007 and 17% in 2006).

• Nearly half (47%) expect to reduce home help and day care, and 61% are seeking overtime to make ends meet.

• Of course, there are always some "eat, drink and be merry" types--the group BrainReserve describes as being out for "pleasure revenge." A third (35%) see uncertain times as a reason to "cut loose" and worry about the consequences later. One of five (17%) is drinking and/or smoking more, and 19% are having more sex.

• Two-thirds (65%) believe we'll come through these hard times, but 86% are worried that health insurance will become unaffordable, and 69% are worried that that government will cut back on education spending. More than half (55%) fear they will outlive their money.

• People are getting even more jaded about institutions and government. Three out of five don't think the U.S. is headed in the right direction, and about the same numbers believe the economy is headed in the wrong direction, and that major corporations can't be trusted. Most (70%) also think that the current financial crisis is due to "pure corporate and individual greed," as opposed to a fundamental weakness in our economic system.

• Most think that government will be cutting back on food, water, energy and pollution policies and regulations, and giving corporations "a free pass" in order to reduce costs.

• 74% believe it's never been more important to vote than this general election--but 54% don't think the election will change anything.

• However, belief in the individual's ability to make a difference seems to be getting stronger, with 71% saying they believe our individual actions will improve society, as opposed to institutional behavior. Half (53%) evaluate companies on their ethics before purchasing, and 65% consider company ethics before investing.