current
Financial Polarization Deepens
The gap between financially secure and insecure consumers is widening, impacting spending patterns and creating distinct consumer segments.
Timeframe
near-term
Categories
Subcategories
Impact areas
Detailed Analysis
Global consumer wealth is accumulating unevenly, leading to a growing divide between those who are financially secure and those facing insecurity. While some consumers experience increased savings and wealth growth, others struggle with rising fixed costs of living. This polarization is influencing spending intentions, with financially secure consumers more willing to take on debt and invest in experiences, while vulnerable households prioritize essential needs. "While the overall attitude of consumers is feeling more secure, pressure in the high-earning jobs market, increasing ‘fixed’ costs, and a growth plateau in new consumers joining the market will influence trends in 2025."
Context Signals
27% of surveyed consumers are financially unimpacted or thriving, compared to 21% in 2023.
High-earning job markets face pressure due to automation, AI adoption, and hiring freezes.
Rebounders (those who experienced income loss but are back on track) are actively seeking additional income streams.
Edge
Brands can leverage data and analytics to identify and target specific consumer segments based on their financial circumstances and spending intentions.
Personalized marketing and product offerings tailored to different income levels will become increasingly important.
The growing financial divide could lead to increased demand for affordable and value-driven products and services.
