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November 23, 2024 -Saturday |
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NIELSENIQ MID-YEAR CONSUMER OUTLOOK: GUIDE TO 2025 REVEALS CATALYSTS TO CHANGE IN KEY VERTICALS ACROSS INDUSTRIES
Tuesday 24/09/2024
- Increased entrepreneurship, with 64% of respondents actively seeking additional income streams
- Buying decisions increasingly influenced by AI, with 40% of consumers willing to use AI to enhance daily shopping decisions
- Macro 2025 catalysts: AI readiness, GLP-1 ripple effect, omnichannel evolution, and commodity costs
CHICAGO, Sept 24 (Bernama-BUSINESS WIRE) -- NielsenIQ (NIQ), the world’s leading global consumer intelligence company, has released its much-anticipated Mid-Year Consumer Outlook: Guide to 2025 report, identifying macro catalysts across industries. The forward-looking study found consumers remain determined and resilient despite the uncertainty, providing a strategic roadmap for retailers looking to win over consumers over the next 12–18 months and beyond.
The report anticipates that global consumers will spend $3.2 trillion more in 2025, representing nearly 6% growth compared with 2024, according to World Data Lab.
With the global economy facing ongoing and unprecedented challenges, understanding consumer behavior has become mission-critical for businesses seeking to thrive in an ever-evolving landscape. NIQ’s semi-annual study offers a comprehensive analysis of the impact of economic events and trends on consumer confidence, changes in consumer attitudes, and important insights into the factors influencing purchasing decisions. The report also explores regional variances, providing in-depth analysis of the unique dynamics of Asia Pacific, Europe, North America, the Middle East, and Latin America.
With looming uncertainty around geopolitical crises, economic stability, and environmental health, consumers are becoming resilient and are spending where it matters most. This shows a determined shift from cautious to intentional consumption, with a focus on a sense of prosperity and well-being.
“There is increasing demand for AI-driven insights based on large quantities of granular data that only NIQ can deliver,” said Tracey Massey, COO of NIQ. “Having your finger on the pulse of current and expected consumer behavior that is benchmarked globally is now table stakes to establish and maintain any competitive advantage.”
Global catalysts to change in 2025:
- Readiness for AI: 40% of consumers would accept a product recommendation from their AI assistant, and 40% would leverage AI to automate and speed up their everyday shopping decisions, making it essential for companies to assess which AI advancements are going to appeal to consumers and provide options to support older consumers.
- The rise and impact of GLP-1 drugs: 31% of global consumers are likely to use a medication or drug to support weight loss, but GLP-1 medications will drive a wide scope of impact by inspiring new spending sources, influencing consumer lifestyles, and shaping norms of interpersonal behavior.
- Omnichannel evolution: The social commerce revolution has led to the evolution of omni, with an 11.6% increase in global online sales performance and the rise of gamification, with 36% of consumers saying they would spend more on a purchase because of an in-app experience.
- Hot commodity costs: 60% of respondents said they will buy fewer snacks and confectionery products if prices continue to increase or remain high for the next three months—the highest ‘dropout' response across all surveyed categories. Cocoa (+128%), Coffee (+43%), and Milk (+44%) are "hot commodities," according to measures by Trading Economics, with rising prices impacting volume sales of related categories/products.
Top trends framing expected 2025 spending: - Consumers’ top concern remains rising food prices (33%), followed by increasing utilities costs (20%) and the threat of an economic downturn (19%). Climate change is fourth (14%), owing to the numerous extreme weather events around the world.
- A majority (67%) of surveyed consumers around the globe say they are likely to change or try a new brand because of lower pricing.
- They intend to continue cutting back on non-essentials like Out-of-Home (OOH) Dining (38%), Out-of-Home Entertainment (37%), and Food Delivery/Takeaways (36%). Expect to see decreased spend on OOH activities, while intentional choices around In-Home Entertainment (48%) and spending on Socializing/Gatherings (46%) are likely to be maintained in 2025.
- Meanwhile, private label product interest continues to rise, with 50% of consumers buying more private label products than ever. What’s more, 40% of global consumers say they would switch to a private label product they enjoy, even if it costs more.
- North American consumers worry most about rising housing costs, while global conflict is a top concern for Africa, Middle East, and Europe.
- The pace of monthly consumer packaged goods (CPG) inflation continues to slow across countries, down to less than 2% growth YoY. Regionally, CPG inflation is also trending down, but it remains higher than average in Latin America and Africa. Monthly global prices have risen fastest in Latin America, which has seen as much as 9% YoY growth.
- Upselling opportunities: Intentional consumers are willing to pay a premium for worthwhile attributes. In Tech & Durables, unit sales of premium priced smart / mobile phones are up 17% in 2023 vs. 2019, compared with economy options, which are down 32% in the same period.
“Over the past six months, there has been a determined shift from cautious to intentional consumption habits. Consumers are willing to spend more but remain conscious of potential changes,” said Lauren Fernandes, Vice President, Global Thought Leadership, NIQ. “Consumers are seeking value with every purchase in multiple ways. They are spreading their spending very purposefully—and expect to leverage any excess in strategic ways in 2025 and beyond.” NIQ’s Mid-Year Consumer Outlook: Guide to 2025 provides key insights for businesses to navigate trends and strategically plan for sustainable growth. The report highlights a significant shift in consumer behavior—from cautious to intentional consumption. To learn more, download the report today and sign up for our global webinar, being held Sept. 24, 2024, at 10 a.m. EST. Click on the link to register for the event. About NIQ:NIQ is the world’s leading global consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. NIQ combined with GfK in 2023, bringing together the two industry leaders with unparalleled global reach. Today, NIQ has operations in 95+ countries representing 97% of the world’s GDP. With a holistic retail read and the most comprehensive consumer insights—delivered with advanced analytics through state-of-the-art platforms—NIQ delivers the Full View™. For more information, please visit www.niq.comAbout Mid-Year Consumer Outlook: Guide to 2025:NIQ’s Mid-Year Consumer Outlook 2024 provides an analytic assessment of the state of consumers, based on a global footprint of consumer intelligence solutions and the feedback of over 17,000 online consumers in 23 countries. The goal: to better understand their current thinking about the economic environment, as well as what they're buying—and why. The survey was conducted between June and July 2024. View source version on businesswire.com: https://www.businesswire.com/news/home/20240923781286/en/ContactGlobal:Sweta Patra Sweta.patra@nielseniq.comAPAC:Liza Martija liza.martija@nielseniq.comEEMEA:Melina Mammidou melina.mammidou@nielseniq.comLATAM:Ari Rodriquez ari.rodriguez@nielseniq.comNorth America:Abbey Benn abbey.benn@nielseniq.comWestern Europe:Julia Mayer julia.mayer@nielseniq.comSource : NielsenIQ
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