Understanding consumer behaviour: the budgeteers

With cost of living escalating around the world, many consumers are concerned about rising prices. Consumer behaviour is changing in response. According to surveys by Euromonitor:

• 24% of consumers regularly seek low-cost goods¹
• 57% of consumers say value for money remains their top priority¹
• 30% of consumers compare prices while in-store at least weekly² 
• 46% of consumers intend to save more.³

Consumers are becoming more selective about what they can afford, and importantly, what they believe will add value to their lives.

Changing consumer behaviour

Consumer behaviour is changing. In response to the current economic climate, consumers are budgeting more. Many are feeling a strong pressure to save, cut down on unnecessary expenses and prepare themselves for unknown costs ahead.⁴ This is expected to be a long-term trend. Consumers are opting for cheaper brands and discount channels to spend less on everyday necessities – 31% of shoppers plan to increase their visits to discount stores.¹

Accessible luxuries

Consumers are choosing to budget in this way so that they can put their money towards accessible luxuries like dining, entertainment and goods that align with their values. These “budgeteers” want to maintain a reasonable, but not excessive lifestyle, to help them cope with the state of the world around them. Even if they aren’t purchased often, accessible, affordable luxuries will continue to resonate with many consumers looking to live well despite economic uncertainty.⁴

Value is key

Consumers are becoming more selective about what they can afford, and importantly, what they believe will add value to their lives. Retailers in response must find ways to stay relevant, demonstrate value and stand out. They must communicate clearly so consumers can justify the purchase.⁴

¹ Euromonitor: Voice of the industry: Consumer lifestyles 2022
² Euromonitor: New consumer landscape: Consumerism and beyond
³ Euromonitor: Consumers in 2023
⁴ Euromonitor: Top ten global consumer trends 2023

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