Spending Priorities – Consumer Behaviour Trend Analysis
Powered by
All the vital news, analysis, and commentary curated by our industry experts.
Spending Priorities Report Overview
The global cost of living crisis is contributing to the rising inflation, and consumers are increasingly concerned about their personal financial situation. All ten of the world’s largest economies are experiencing inflationary pressures, contributing to a global cost-of-living crisis. The impact of inflation is reflected in the shift in consumer spending behavior towards more frugal choices, which has resulted in a moderation and avoidance trend. Consumers are also becoming less concerned about product quality and more focused on value for money. Companies must now consider how to help consumers, and their budgets, especially since wages often have not kept up with the cost of living and the consumers’ concerns continues to grow. Brands must adapt to these changes and offer products that cater to consumer concerns by providing better value-for-money options, multi-functional products, and discounts.
For more insights on the spending priorities consumer behavior trend analysis, download a free sample
Key Spending Priorities Insights
Consumer spending on alcoholic beverages has been relatively low because most consumers buy in small quantities or do not buy these products at all. Spending on alcoholic beverages has barely changed, but medium-high spending on wine, beer, and spirits has decreased slightly over time. This suggests that the cost-of-living crisis is impacting the alcoholic drinks category, as consumers moderate and avoid non-essential purchases.
In terms of spending in the last three months on non-alcoholic drinks such as carbonated soft drinks, bottled water, juice and squash, coffee, tea, and other soft drinks, there has been a decline over the year as consumers seek cost-effective ways to save money. However, despite financial concerns, consumers are willing to continue with their usual purchasing habits in this category, especially in the soft drinks sector, and are more inclined to cut costs in other categories, which is likely a direct result of brand loyalty and preferences.
In terms of spending on dairy/dairy alternative products, consumers moderated their consumption of dairy foods and white milk in Q4 to save money. To reduce high spending, consumers are switching to cheaper alternatives in these categories, such as choosing supermarket-own-brand products. Because these products are necessary for many households, budget-conscious consumers must reduce high spending, where it is not possible to avoid purchasing entirely. However, as dairy prices rise significantly with inflation, consumers choose to limit their consumption of this category. Choosing plant-based dairy alternatives can sometimes be less expensive.
Despite overall spending remaining high, consumers are likely to reduce their meat and fish consumption to account for rising prices and stay within their budgets. Meat/fish brands must understand how consumers are changing their behavior in this category to save money, such as purchasing large quantities of meat to freeze to save money in the long run, despite higher initial costs.
Due to the short shelf lives of non-pantry items such as fresh fruit & vegetables, savory/deli foods, prepared meals, ice cream, and in-store bakery, consumers need to make frequent purchases. Overall, most consumers spend medium-high amounts on fresh fruits and vegetables, but the number of consumers reporting high spending has decreased in Q3 and Q4 of 2022, highlighting consumers shift to cheaper brands or shopping at cheaper outlets to reduce spend on these necessities while being forced to accept price increases where this is not possible due to availability and quality assurance.
The spending on pantry staples has remained consistently high over the year. When it comes to staple pantry items like pasta and rice, consumers are less likely to be brand loyal and will opt for the most cost-effective option, which is often the supermarket’s own brand.
Consumers are conflicted in the baby food and baby milk categories because they must purchase high-quality products regardless of price increases. In Q3 and Q4, consumers spent more on smoking products, while spending on wellness products decreased. Despite many of the categories being essential, consumers are re-evaluating their personal care purchases to reduce spending in this personal care sector.
Although quality is the most important indicator of value for money, consumers are less concerned about it in Q4. Consumers are finding features other than quality attractive in Q4 2022.
For more information on the spending priorities consumer behavior trend analysis, download a free sample report
Spending Priorities Overview
Page Count | 23 |
Key Take-outs | Changing purchasing behavior, Switching to cheaper alternatives, Moderation & Avoidance, and Value for money perceptions |
Scope
- In the current economic climate, rising inflation and the cost of living are having a significant impact on consumer budgets, pushing them towards more frugal choices. As a result, consumers are becoming increasingly worried about their personal financial situation and are changing their spending habits.
- Brands must understand and adapt to these changes by offering affordable, multi-functional, and long-lasting products that cater to consumer concerns.
- Consumer perceptions of value for money have also shifted, with low prices, multi-functionality, and discounts becoming more important than quality.
Reasons to Buy
• Gain a broader appreciation of the fast-moving consumer goods industry.
• Understand the relevant consumer trends and attitudes that can drive and support innovation and brand strategy.
• Access valuable strategic take-outs to help direct decision-making and inform new product development.
Tata Tea
Halfords
Frequently asked questions
-
What are the key take-outs from the spending priorities consumer behavior trend analysis?
Changing purchasing behavior, switching to cheaper alternatives, moderation & avoidance, and value for money perceptions are some of the key take-outs from the spending priorities consumer behavior trend analysis.
-
What has impacted the consumer spending on alcoholic beverages?
The cost-of-living crisis is having an impact on the alcoholic drinks category, as consumers moderate and avoid non-essential purchases.
-
What is consumer spending pattern toward non-pantry items?
Majority of consumers spend medium-high amounts on non-pantry items such as fresh fruits and vegetables.
-
What are consumers looking forward to apart from quality while making purchase decisions?
Consumers are finding features other than quality attractive in Q4.
Get in touch to find out about multi-purchase discounts
reportstore@globaldata.com
Tel +44 20 7947 2745
Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.