Live A Little

In 2023, the "treat budget" of consumers is likely to be impacted by potential recessions in major global economies. Financial and economic confidence is wavering, with a drop in confidence of 40% in North America and 24% in Europe. However, two-thirds of consumers say their current financial situation is secure, which could be due to pent-up savings or a favorable job market.

The top categories for consumers to treat themselves with include fashion, food delivery, technology, dining out, travel, personal care items, accessories, experiences, skincare, and in-home entertainment. Clothing is the only category that appears in the top three choices across all generations and genders. Some retailers, such as Zara owner Inditex, are seeing sales soar, while "luxury for less" retailers are among the fastest-growing.

Beauty and cosmetics are also likely to be a priority for consumers when treating themselves on a budget. The "lipstick index" from the 2001 recession is expected to repeat in 2023, with cosmetics sales up, and retailers such as Target and Walmart refreshing their beauty departments. Younger women, particularly female millennials, are more likely to prioritize buying skincare and beauty items as treats.

Beauty's resilience is likely due to a combination of factors, such as more socializing, affordability, and emotional connection..