current
Reduced Consumer Spending
Consumers globally are anticipating spending cuts in 2025 due to persistent inflation and economic uncertainty.
Timeframe
near-term
Categories
Subcategories
Impact areas
Detailed Analysis
The global consumer spending outlook for 2025 is marked by caution and prudence. A significant portion of consumers plan to reduce their spending, driven primarily by reduced disposable income and the need to prioritize essential expenses. "Globally, a cautious and prudent outlook prevails, though not without pockets of optimism. 31% of consumers are planning further spending cuts, although a considerable 47% plan to maintain their current spending levels."
Context Signals
31% of consumers planning further spending cuts
47% plan to maintain current spending levels
19% plan to increase spending
Edge
Companies focusing on value and essential goods may be better positioned to weather the downturn.
Personalized offers and loyalty programs could become increasingly important for retaining customers.
The bifurcation of consumer spending may accelerate, with growth at both the premium and discount ends of the market.
