WARC has released its 2025 Global Consumer Trends report exploring the key issues that will influence consumer purchase decisions across brands and categories over the next year.
Based on a comprehensive set of GWI surveys across 54 markets combined with WARC’s own research, case studies and analysis, the report focuses on five broad trends influencing brand selection: The widening cost-of-living gap, increasing trust in individual creators, AI assistants disrupting the purchase journey, consumers’ proactive approach to health, and the rise of alternative social activities.
Stephanie Siew, Senior Research Executive, WARC, says: “Amidst persisting economic uncertainty and the unpredictability around US trade tariffs, consumers are becoming more intentional in their spending and taking greater control over different aspects of their lives, particularly in the way they consume information, manage their wellbeing, and connect with others.
“With this report we aim to provide a wider view of the major issues confronting our industry from the perspective of consumers, with suggestions to help businesses create the most impact in the coming year.”
The consumer trends that will shape spending decisions in the year ahead, identified by WARC are:
● The widening cost-of-living gap: 55% of low-income consumers would rather pay less for a cheaper own-brand product than pay more for a brand they know
Spending power is increasingly polarised, and the widening wealth gap is causing a divergence in consumer spending habits. In the US the wealthiest 10% of households now account for almost half of consumer spending, per Moody Analytics; and UBS predicts the richest millennials will hold five times more wealth by 2030 than they do today, setting them further apart from their peers.
Tariffs are likely to accelerate this trend. Compared to higher-income households, lower-income families spend a larger portion of their income on essential goods, including more traded goods like food and apparel. Price increases in any of these areas would add substantially more strain on their budgets and reduce their purchasing power. Job losses in sectors reliant on imports are also expected to disproportionately affect lower-income families.
Within the low-income segment, 55% of consumers worldwide surveyed by GWI said they would rather pay less for a cheaper own-brand product than pay more for a brand they know. This compares to 40% in the high-income segment who said the same. The popularity of private label or own-brand products reflects consumers’ growing willingness to switch brands for better value.
Faris Yakob, Co-founder, Genius Steals, says: “Since the ‘middle class’ is bifurcating into the haves and have-nots, many companies are reshuffling to serve the top twenty percent and the top one percent within that. The lower echelons are offered value alternatives and those with money are tempted to spend it on various levels of luxury as those companies pivot to lower volume / higher margin business models.”
Marketers can respond by re-examining their target audience and adjust pricing strategies to align with changes in demand. Additionally, re-evaluate the value drivers for different segments and tailor communications and product offerings accordingly.
● The growing credibility of individual creators: Nearly half (47%) of social media users have made purchases based on influencer endorsements in the past year
Consumer attention is increasingly shifting to non-traditional information sources for news and information. Independent voices such as social media influencers and content creators, which are viewed as more authentic and transparent, are gaining traction.
Per GWI, consumers are now more likely to get their news from social media (57%) than from more traditional channels such as national TV news (52%) and news websites (49%). Consumption varies widely by generation — 71% of Gen Z have seen, read, or heard information on news from social media in the last month, compared to 62% of millennials, 48% of Gen X, and 33% of baby boomers.
As influencers build their credibility as trustworthy sources of information, their endorsements are highly valued. Nearly half (47%) of social media users have made purchases based on influencer endorsements in the past year, with trustworthiness a key factor in purchase decisions.
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