Necessities & Home Spending

Consumers will prioritize spending on necessities during a tough economy, but will still seek to purchase things for their home and family. Healthcare spending may also be affected, with people reevaluating optional procedures. Brands need to be even more relevant in order to stay top of mind when consumers are ready to make a purchase.

This trend originates from the report:

VERICAST - Predictions & Trends 2024

Discretionary spending will somehow endure. We expect that, while consumers will be sucking in their metaphorical guts after some financial belt-tightening, they’ll still spend on more than just the bare necessities. Tough economic times will require people to redefine a true “need” versus something they can nudge into the “want” or “nice to have” column.

It will be a balancing act as they seek value and prioritize needs. But, as needs take precedence over wants and discretionary spending shrinks, consumers will still seek to purchase things for their home and their family. The challenge for marketers will be to stay tuned in to behaviors and pain points across different segments of the population.

“The key for brands,” says Sara Thomsen, Senior Manager, Retail Client Strategy, “is to be top of mind when people are ready to part with their hard-earned money and make a purchase.” In the healthcare space, inflation and looming recession will lead people to reevaluate some procedures or put off elective surgery. “Parents are likely to prioritize spending on their children’s healthcare needs versus themselves,” says Susan Maurer, Client Strategy Director for Healthcare.

From a brand perspective, people only have so much time, so the brand will need to be highly relevant and provide a sense of convenience..