A storm of global political and economic factors is propping up stubbornly high inflation rates and wage stagnation, fuelling a surge in the cost of living. Consumers globally are searching for new ways to cope. A whopping three out of four of global consumers surveyed in early 2023 say they are concerned that the prices of everyday items are going up. In response, most are adopting new cost-cutting tactics, while others are turning to credit and borrowing resources to bolster their spending power.
Demand for private label continues to grow, especially among baby boomers
Rising food prices continue to plague consumers. They are increasingly rethinking their traditional shopping habits and searching for ways to stretch their food budgets. Focusing on working within their squeezed household budgets, many consumers are adopting strategies that include forgoing branded products and instead embracing less expensive private label products. This is particularly true among baby boomers, who often have less flexibility in their household budgets than younger consumers: in 2023, more than one third of global baby boomers surveyed by Euromonitor International said they seek out private label and low-cost products.
More than one third of global baby boomers said they seek out private label and low-cost products
Source: Euromonitor International 2023
Private label is also making products more attractive by focusing attention on other key attributes, such as “locally sourced” or “locally manufactured”: one in four global consumers say they are influenced by these features. Private label producers, in turn, are adopting more sophisticated marketing techniques to attract a wider audience, which includes elevating local offerings to niche product status.
Consumers seek lower prices and value for money while limiting compromises globally
After suffering the travails of the pandemic, a large proportion of consumers are eager to get out and enjoy life, including taking hard-earned holidays, and they are reluctant to let spending worries force them to cancel or postpone their plans. Indeed, 28% of respondents in Euromonitor International’s global survey say they expect to increase their spending on travel and holidays over the next 12 months, including 34% of Generation Z.
"Value for money” is at the top of the list among desired holiday features, noted by 29% of global respondents
Source: Euromonitor International's Global Survey, 2023
In an attempt to secure better value, many prospective holiday-makers are making changes to their travel dates and altering the duration of their trips if they can obtain better prices. In turn, travel and holiday-related businesses offering consumers more flexible itineraries are finding that they have a ready audience. Low-priced dining options, affordable and easy access to experiences and theme parks and other holiday-related discounts and bargains can also lure value-conscious consumers and curb any feelings of compromise or trade-off.
Beyond the scope of travel and holidays, a large proportion of consumers are employing similar tactics to ensure they limit any compromises when shopping for everyday items. Reluctant to give up cherished indulgences, many continue to devise clever ways to accommodate small, non-essential luxury items within their tightly squeezed budgets.
Consumers responding to brands/companies that offer better value by making the most of technology
Global consumers are continuing to gravitate toward brands/companies that enhance the value proposition by offering tech-based promotions and shopping solutions that ensure that customers can easily access affordable products and services.
More than one third of global consumers regularly compare prices online before they purchase items or services, showing even higher share among millennials
Source: Euromonitor International Voice of the Consumer Lifestyles Survey 2023
Consumers are also increasingly recognising the value inherent in the multiple opportunities they now have to engage with brands online, taking advantage of “insider” discounts or other benefits, providing feedback, influencing product development and otherwise narrowing the gap between buyer and seller. Similarly, global consumers are continuing to embrace the value of omnichannel access and other convenient digital paths offered by forward-looking brands/companies. To boost their relevance among price-conscious consumers, brands need to clearly communicate if they are to promote the value that their wide range of tech-based retail solutions offer.
Learn more about global consumer trends in our report Voice of the Consumer: Lifestyles Survey 2023: Key Insights, to identify key global consumer trends and understand how consumers’ current choices and behaviour are reflected in their purchase decisions based on Euromonitor International’s most recent consumer survey data.