4
The Critical Consumer 2024
WHAT DO YOU NEED TO KNOW?
Despite inflation slowing,
consumers will spend less in 2024.
WHAT DO YOU NEED TO KNOW?
Retail, consumer products, and leisure
companies must ensure their products are
"value-right," providing strong perceived value for
money and quality in categories where shoppers
are targeting cutbacks, irrespective of their
income levels.
Reviews of pack price architectures and defence
of pricing for producers should therefore remain
under close scrutiny, while careful curation of
ranges must reflect consumer demand and
affordability.
Consumer-facing companies across sectors
should also turn to promotions and loyalty offers
that make customers feel they are getting a deal.
Alternative offerings to promote waste avoidance
in grocery or re-commerce models in non-food
may find increasing acceptance, too, aligned to
opportunities for upstream consumer products
producers to increase sustainability credentials.
WHAT DID CONSUMERS SAY?
Against the backdrop of budgetary pressures
and economic insecurity:
• 37% of all consumers plan to spend less in
2024 compared to 2023, while only 17%
plan to spend more.
• 41% of consumers in the low-income bracket
plan to spend less in 2024 compared to 2023,
while only 16% plan to spend more.
• A quarter of higher earners (24%) will
spend less in 2024, while 26% plan to
increase spending.
Irrespective of income levels, price matters
to everyone. In addition, data suggesting that
spending levels across income groups will
remain the same or increase may still translate
to lower buying volumes, given the persistent
effects of inflation.
Affordability and curation of range are
key due to lower disposable income.
WHAT DO YOU NEED TO KNOW?
Value for money and perceived value is
uppermost in the minds of EMEA consumers.
From an e-commerce perspective, consumer
product companies must collaborate with
retail partners to improve online merchandising
and listing positions within category pages,
which will boost consumer product awareness,
understanding, and consideration.
Additionally, across all categories it is crucial to
implement a clear 'good (price), better (feature),
best (quality)' pricing architecture,ensuring
consumers recognise the value proposition at
each level, thereby aiding in informed purchasing
decisions.
WHAT DID CONSUMERS SAY?
Consumers plan to net spend less across all
sectors. This applies particularly to non-food
(where purchase decisions will be held back) as
well as leisure sectors (where more time will be
spent at home):
• 43% of all consumers expect to spend less
on consumer electronics, 40% less on home
entertainment, and 36% less on restaurants
and bars in 2024 vs. 2023.
• Only 14%, 12%, and 18% expect to spend more
on these three categories, respectively.
The evidence indicates that spend will decrease
in non-discretionary categories, and even more
so in discretionary. This indicates just how much
pressure consumer wallets are under.
37%
plan to spend
less overall
in 2024
43%
plan to spend
less on
consumer
electronics