Post-Recession Spending Characteristics in Developed Markets

Spending impacted by economic and social change

Consumer spending in developed markets was shaped in the decade from 2007 to 2017 by factors such as economic uncertainty, squeezed middle class, technology, population ageing and growing environmental concerns. Overall, the share of discretionary spending fell, due to falling incomes and rising housing costs.

Signs of a global upturn

The global economy is forecast to improve in 2017, with GDP growing, unemployment falling and consumer confidence up in many developed markets. Nevertheless, consumers remain cautious, with 51% intending to save more money in 2017.

Income inequality continues to rise

Incomes have fallen in many developed markets, while the gap between the rich and the poor has widened everywhere. Young people are particularly affected by debts, lower salaries and high housing costs.

Savvy shoppers

Post-recession shoppers are more frugal and better informed than ever before, largely due to the development of e-commerce and m-commerce. The emphasis has shifted from the lowest prices to the best value for money, and bargain hunting has become an entrenched mentality.

Living for the moment

A notable legacy of the recession has been a shift among young consumers towards short-term financial thinking and a mentality that prioritises quality of life over money, and experiences and memories over material goods. This is linked with the rapid development of the sharing economy.

Post-recession winners

Sectors benefiting from the post-recession mindset include all types of discount retailer, tourism, consumer foodservice and leisure services, healthcare products, affordable luxury goods, home crafted and eco-friendly products, and financial lending.