Young couple choosing bottle of wine in supermarket

Euromonitor International has released its Global Consumer Trends report for 2023, which identifies key trends likely to influence how consumers make decisions in the market across all sectors.

A key takeaway from the report is that 75 per cent of consumers did not plan to increase overall spending in 2023 (28 per cent are actively planning to decrease spending), with saving money and budgeting described as top of mind for purchasers.

Forty-six per cent of respondents told Euromonitor they planned to increase saving money in 2023, with only 10 per cent saying they would decrease their saving.

Methods for making this saving are varied – 21 per cent of consumers said they planned to increase their purchases of private labels or store brands, while 61 per cent said their shopping habits in this regard would remain unchanged. Additionally, 31 per cent of consumers stated they would increase their visits to discount stores over the next 12 months.

Euromonitor warned that major brands cannot rely upon consumer fidelity either, stating: “Affordability and bargains often precede brand loyalty.”

And for retailers, over half (56 per cent) of those professionals surveyed said that their company had increased prices of products or services as a response to inflation. Two-thirds said the rising cost of raw materials had had an extensive impact on their company in 2022.

Similarly, ‘buy now, pay later’ (BNPL) solutions continue to gain momentum, with Euromonitor reporting that these services reached a global lending value of USD$156 billion in 2022. The analysts also predict that BNPL will increase in importance for businesses as they seek to offer ‘budgeteers’ a means to purchase. Nevertheless, 56 per cent of retail professionals said their company does not offer BNPL options, with Euromonitor identifying this gap as an unmet potential for the industry.

There is still an opportunity in convenience, with 44 per cent of consumers saying they are willing to spend money to save time. Yet, bricks and mortar establishments retain their appeal, with a third of survey respondents saying they like to browse in stores even if they don’t need to buy anything. Retailers should also consider the impulse purchaser, with nearly one fifth (19 per cent) of those surveyed saying they often make purchases unexpectedly.

Ethical concerns are also maintaining their position as a key motivator for consumers, particularly with gender equality.

“Diversity, equity and inclusion (DEI) should sit at the centre of core values,” Euromonitor’s report reads.

According to the report, 59 per cent of female consumers believed their choices can make a difference in the world, while 46 per cent said they preferred to take charge and lead. Worldwide, there has been an increase in female disposable income too (albeit set against a larger increase in male spending power), predicted to reach over USD$8,000 in 2024.

Gen Z is shown to place particular importance on social issues, with 30 per cent of this cohort saying they make purchase decisions based on brands’ social and political attitudes, while 24 per cent boycott brands that do not share their personal beliefs.

Of potential interest for the drinks industry is the global growth of cannabis and CBD related products. Adult use cannabis products hit global retail sales of USD$25bn in 2022, while the CBD market increased was worth USD$12bn. National Liquor News has previously highlighted the potential of this trend in 2022.

And finally, in good news for the alcohol industry, Euromonitor is tipping the return of in-person social events.

“Consumers are settling into new schedules and navigating a return to reality… Companies should prepare for a surge in out-of-home consumption.”

Indeed, the report found that 39 per cent of consumers said that more of their everyday activities will be in person over the next five years, with over a quarter (28 per cent) saying they planned to increase their outings to restaurants over the next 12 months.

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