10 main global consumer trends for 2023

Publicity

According to a report by Euromonitor International, a global leader in providing business intelligence and strategic market analyses, consumer habits for 2023 are presenting 10 key trends that should be observed by companies in their business actions. Since keeping and attracting customers is the ultimate goal, it is essential to understand that their behaviors never cease to evolve.

1- Authentic Automation

Authentic Automation While digital is indeed a force to be reckoned with, technology is still unable to match human nuances. Though machines provide convenience and speed, the power of emotional connections should not be underestimated. Companies need to adopt Authentic Automation in order to strengthen the shopping journey or risk creating friction with customers. Shoppers gravitate towards quick and convenient options in an attempt to save time and money. Automation replaces some manual tasks in order to meet these demands. Smart devices are able to detect when supplies are low and restock goods. Robots are used for last mile delivery and for front desk services at hotels. The act of consuming is becoming more passive because of these advances. Eight out of ten consumers under the age of 29 claim that they would feel comfortable interacting with robots. And though adoption rates are slow for older age groups, the Digital Elderly are reducing the generational gap. Technology, however, is only one part of the equation. Consumers still have a craving for personal touch. A genuine emotional connection makes consumers feel respected and appreciated. One fact remains true: consumers want to interact with humans and machines, but for different reasons and at specific points in the path to the purchase.

Machines behind the scenes

Authentic Automation benefits your bottom line and productivity. Robots are able to achieve levels of accuracy and speed that exceed what humans are capable of doing. Market leaders are investing in these technologies as a way to reduce costs, streamline operations and maximize efficiency. Companies are focused on improving the shopper’s journey. Robotics update backend operations and automate manual tasks, while humans drive contact-based interactions. Advanced algorithms and hyper-personalization help you offer curated content, products and services that reflect your customers’ specific preferences. However, we should be mindful regarding over-automation. Relying too heavily on technology can compromise brand engagement, and customers may feel disconnected if the human element is removed from the experience. Finding the right balance is key.

2- Cautious Shoppers

When to spend versus when to save — therein lies the dilemma. Inflation and high prices place restrictions on purchasing power. Consumers have become more judicious with their money. Businesses need to implement or develop solutions that help Cautious Shoppers save while evaluating their overhead expenses. Companies feel the pressure too. High operating and production costs are reflected in retail prices. Companies are changing raw materials or reformulating products in order to cut down expenses with commodities. Profit margins are shrinking and some players will be driven out of the market. Inventory rationalization, updated pricing strategies, restructured investments and supply chain optimization are measures adopted to respond to new purchasing habits. The order of the day is to provide flexible and cost-effective options. Payment plans like “buy now, pay later” can help Cautious Shoppers get their money’s worth. Launching a rewards program or expanding perks to include exclusive sales will also help maintain customer loyalty. Bundles that include multiple products, direct-to-consumer sales models, and resale or rental options help brands offer enticing deals and retain customers. Other options include developing strategic partnerships to combine or expand resources, produce affordable goods, or offer special discounts.

3- Screen Time Control

Internet activities are shifting from automatic to conscious. Though they are not completely disconnecting, customers are indeed attempting to consolidate and centralize the use of their platforms to optimize their time. When it comes to controlling screen time, companies have the opportunity to refine digital experiences with powerful, integrated features. Apps have taken center stage in all facets of life. However, the sheer number of platforms at our disposal does have a downside: the excess of options raises frustration among consumers. Last year, over a fifth of consumers deleted social media accounts they didn’t use often. This is not a digital detox, however; rather, it means focusing on functionality and efficiency. Most consumers do not envision cutting down on their screen time, but they are being more selective about how that time is spent. Digital natives want solutions that can streamline and consolidate their online activities. Curated content streamlined apps and personalized recommendations help consumers control their screen time. Companies must invest in and offer solutions that increase digital well-being. Time management tools that track screen time, schedule breaks, and block distractions can help users develop healthier digital habits. Customer-centric brands closely monitor behavioral analytics in order to understand how users engage with their apps or websites. This data should be used to create intuitive platforms and interfaces.

4- Eco-economics

Cutting down, a practice that is sustainable by definition, is not all bad. The economic option has become to limit and reduce. Decreased consumption is increasing sustainability by approximation. Organizations are striving to help Eco-economic consumers save both their money and the planet. Safety trumped sustainability during the pandemic. However, all the lockdown measures and quarantines netted positive climate effects such as improved air quality. Now, saving is once again a priority, but the cost of living is creating a new sustainable behavior. The prices of goods, energy and housing are causing people to cut down their expenses. Consumers will continue to switch to energy-saving products, eating at home, reducing appliance use and limiting their travels. Less than a fifth of consumers were willing to pay more for essential houseware with sustainable features last year. But market dynamics spurred green activities such as repairs, second-hand shopping, and renting. The purchase motivations of Eco-economic consumers also stem from the post-Covid-19 desire to live more responsibly. Economic necessity ushered in a new era of sustainable behavior rather than purchasing decisions. This year, consumers will still be reluctant to pay more for sustainable products. The consumption patterns veer less towards acquisition and more towards reduction, which has a positive impact on the planet. Business models must seek to unite cost savings with green commerce.

5- Game Time

Games are now one of the main forms of entertainment. The generational divide is becoming less apparent and the typical gamer stereotype is under fire. Companies can leverage gaming culture in order to convert gamers into payers. People want to escape from the stress of their everyday lives. On-line communities are becoming platforms for socialization and connection with others who share similar interests. However, games no longer attract only the most fanatical users and younger generations. Casual, amateur, and professional gamers are found in all age groups. Some have even turned this form of entertainment into an occupation. The world of E-sports has built a dedicated following and is viewed by millions around the globe. These passionate fans tend to buy brands that their favorite teams or gamers use. Gamers are investing more time and money in enriching their experiences. Spending on virtual products and add-ons continues to grow, and their perception of ownership is changing. Physical and digital assets are of equal importance for Game Time consumers. Even though virtual communities are just a slice of the online universe, gamers are indeed immersed in these platforms, and brands have a unique opportunity to reach hyper-engaged consumers. Incorporating gaming touchpoints into the customer’s journey will strengthen brand awareness among Game Time consumers.

6- Here and Now

Consumers are allowing themselves to live a little. They are not relinquishing financial responsibility; rather, they are taking a short term buying approach with discretionary items. Awakening a sense of joy can be a purchase motivator. Companies should create campaigns targeting special occasions. Alternative payment methods can also help spread costs over time, catering to immediate consumption habits. The Here and Now is about living in the moment. Consumers don’t know what tomorrow will bring and they are no longer wasting their time. Money is not the only valuable asset. Time, health, and happiness are equally important. Price tags are still relevant, but the emotional benefit also justifies impulse buying decisions or larger purchases. Discretionary spending has become more intentional. Productivity, personal growth, and joy are reasons to purchase. Smart extravagances and affordable luxuries allow consumers to indulge sensibly in order to relax or deal with the world. Alternative payment methods, in turn, encourage shoppers to pluck up the courage to buy higher-priced items. When it comes to marketing actions, the strategy is marketing for the moment. Emotional marketing that invokes a positive brand association can help companies attract spending habits. Brands also need to target specific or special occasions. Data and internal algorithms can be integrated in order to identify patterns in web activity that infer purchase motivations and trigger personalized promotions. Creative campaigns that play with spontaneity or one-off events can attract these consumers. Pop-up stores, flash sales, limited time offers, or exclusive releases are methods that entice shoppers to make impulse purchases. The popular “buy now, pay later” model spreads the cost of big-ticket items over time so that shoppers feel comfortable at the checkout. Loyalty programs allow cashback credits or reward points to be used in purchases. New lending or credit options can make your products accessible to a wider subset of buyers.

7- Revived Routines

Consumers are adapting to new schedules and navigating their return to reality. They are eager to get on with their lives in spite of the uncertainties ahead. Businesses must be ready for an increase in out-of-home consumption. Companies need to offer fun, re-engage consumers and help them achieve a sense of normalcy. No one wants to be confined anymore. Instead, people are getting their bearings and going out. The office workflow has gradually increased as hybrid schedules bring employees back to the workplace. Concerts are coming back. Nightlife has been revitalized. And restaurant reservations are on the rise. From fitness classes to happy hours, consumers are resuming their in-person social gatherings so that things are the way they used to be. The Revived Routines trend combines pandemic-driven habits with a desire for consistency and an attempt to go back to simpler times. At-home consumption dominated sales during the pandemic. But immediate consumption purchases and out-of-home experiences are making a comeback. The Revived Routines trend is an opportunity to improve your distribution strategy in on-trade channels. Food, beverage, hospitality and entertainment, among other service sectors, are poised to reintroduce fun and excitement when consumers are away from home.

8- Feminine Ascension

The fight for women’s rights is increasingly stronger. Reproductive autonomy and sexual health are under the spotlight. People are not backing down until there is positive change. All organizations need to be advocates for Feminine Ascension. Diversity, Equity and Inclusion (DEI) must become part of our core values. Feminine equality is being demanded The #MeToo movement was a catalyst for social change. The overturning of Roe v. Wade in the US, the deaths of Mahsa Amini in Iran and femicide victim Debanhi Escobar in Mexico, among other injustices, sparked outrage worldwide. Steps have been taken to address systemic barriers, but gender discrimination continues to stick out for all to see. Women are proactively breaking down stigmas and challenging preconceptions. They are challenging social norms and stereotypical roles while asserting their authority. Women buyers want to be fairly represented. Limited product varieties or basic offerings won’t cut it. These consumers buy from brands that champion the cause and customize products according to size, age, or stage of life. In the job market, women expect employers to set equal standards. Features, benefits, and flexibility must serve their well-being. Women’s empowerment cannot be ignored. Gender equality creates opportunities for companies, both as employers and as players in the market.

9- The Thriving

People are way beyond the point of burnout. Exhaustion is higher than ever. Overwhelmed consumers are putting less effort into things and doing their best to “make do”. Companies can respond to this “global fatigue” with marketing that cuts through the noise and bypasses distractions, providing products and services that address immediate needs. Overworking to the detriment of one’s mental well-being is no longer a reality. Things that used to matter don’t matter anymore, at least not the way they once did The goal is to get on with life by fulfilling one’s daily duties without depleting one’s energy in the process. The Thriving are taking a break, taking a step back and letting go of everything that is beyond their control. They are looking for peace of mind and solace. These consumers buy products that improve their mood and provide a sense of calm and comfort. This year, the focus is the quest for balance, and companies need to be seen as champions of consumers’ physical and mental health. Employees will demand a higher quality of life in the office before returning to their desks in a permanent capacity. Companies must provide measures that offer support and security. This profile focuses its efforts on people and products that serve them. For companies, the priority will be to evaluate how their offers can add value. Addressing specific needs is an approach that can resonate with these consumers.

10 - Young and Disruptive

Expressive and progressive. Gen Z is starting to take the lead as their financial freedom increases. These sensible consumers stand up for their beliefs and speak out. Real, raw, and relevant content grabs their attention. Brands need a crash course on these trendsetters and emerging professionals to be in tune with their expectations. Generation Z is an economic force and makes up nearly a quarter of the population. The pandemic has shaped their years of most intense development, which translates into greater resilience and expectations than those of previous generations. These young, disruptive consumers are on the cusp of financial independence, and their unconventional upbringing will transform business as we know it. As digital natives, technology is part of their DNA. Gen Z invests in online personas and develops personal brands carefully and specifically. Social media platforms like TikTok are stages on which to perform, as well as search engines for discovery and lucrative careers. Millennials were the first content creators, but Gen Z will up the ante. Generation Z is immune to traditional adver tising. They have a keen eye for authenticity and social impact. They want to feel a genuine connection when engaging with brands, and these shoppers aren’t afraid to voice their concerns; In fact, more than a third of this population shared opinions on social or political issues on their social media pages in the past year. Social media is ingrained in the Gen Z lifestyle. Shoppers scroll through their feeds to be inspired, to learn and to find opinions. Their attention spans are shrinking, but the amount of content is going through the roof. Brands only have seconds to stand out from their competitors. Actions speak louder than words, and empty promises or silence on social causes can wreak havoc on one’s reputation. Trust is created when companies honor their commitments. Encourage proof. Instead of running typical ads, use endorsements to let your product speak for itself. Loyal customers are your best advocates.

“Amid elevated inflation and a sharp global economic slowdown, the outlook for consumption is challenging this year. In 2022, despite record high inflation, consumer spending was relatively resilient, particularly in advanced markets, bolstered by households’ accumulated savings during the pandemic and government’s financial support that helped cushion the inflation hit. In 2023, however, the support of these two factors is waning. Meanwhile, a sharp economic slowdown or recession in many markets means consumer income would decline or stagnate, affecting consumer spending power, which is already squeezed by higher prices, especially for food, energy, and rents. Euromonitor International forecasts global per capita consumer expenditure to grow merely by 0.7% in real terms in 2023, compared to a growth of 2.0% in 2022. Asia Pacific will lead the global increase in per capita consumer spending as the region’s economies continue to recover from the pandemic. North America and Western Europe would see a slight decline in private consumption, while stagnation in consumer spending is expected for Latin America, the Middles East and Africa, as well as Eastern Europe”, explains Lan Ha, Head of Practice - Economies

This content was reproduced based on the Euromonitor International study that identifies the 10 Main Global Consumer Trends each year. All research and market size data in this report are global unless otherwise stated.