Top Five Trends in Income and Expenditure

Delivery

This report comes in PPT.

Key Findings

Persistent rise in living costs and polycrisis solidify consumer caution

Years of geopolitical, economic, social and environmental volatility have entrenched consumer caution as a permanent behavioural trait. Since 2022, rising living costs have outpaced income growth, further intensifying this trend. Euromonitor International's Voice of the Consumer: Lifestyles Survey, fielded January to February 2024, shows that, as of early 2024, 72.4% of consumers remain concerned about increasing everyday costs, a marginal decline from 2023, signalling that cautious spending is now a long-term behavioural shift rather than a temporary response.

Value and purpose-driven spending on par with cautiousness

In 2023, consumers displayed increased resilience but adopted more selective spending habits. They prioritised brands that align with their values, support social and political causes, and champion financial independence through transparency. Amid rising costs and tighter budgets, consumers are focused on maximising the value of their purchases. Enhancing the value proposition is essential to attract and retain today's consumers, focusing on addressing their needs through value-added innovations.

Targeting the overlooked presents significant growth opportunities

Often-overlooked consumer segments hold significant growth potential for brands. The expanding "silver" segment wields considerable purchasing power and seeks tailored offerings. Low-income consumers, a sizeable market, are driven by value and loyalty. Meanwhile, rural consumers, with distinct preferences, remain largely untapped too. By engaging these segments, brands can unlock new paths for innovation and market expansion.