current
Prioritized Essential Spending
Consumers are prioritizing essential spending, particularly on groceries, while cutting back on discretionary items like dining out and entertainment.
Timeframe
near-term
Categories
Subcategories
Impact areas
Detailed Analysis
Consumers are demonstrating a clear prioritization of essential spending, particularly on groceries, which are largely resistant to spending cuts. "Only 15% of consumers say they will spend less on groceries globally...This reflects how difficult it has become for consumers to reduce spend on essentials, given the impacts of inflation in the past two years." This prioritization comes at the expense of discretionary spending categories like dining out, entertainment, and non-food retail.
Context Signals
>80% of consumers expect to spend the same or more on groceries
33% of consumers plan to spend less on non-food retail
34% plan to spend less on dining out
Edge
Grocery retailers may explore opportunities to offer more premium or value-added products to capture a greater share of wallet.
Restaurants and entertainment venues may need to focus on value propositions and unique experiences to attract customers.
Subscription-based models for groceries and other essentials could gain traction as consumers seek cost certainty.
