While price remains important, today’s spending choices are guided just as much by emotion, experience and meaning. This evolving definition is central to understanding how and where people choose to spend their money – and why.
The rise of the savvy consumer
With household budgets under pressure, consumers have become more adept at navigating rising costs. They scrutinise prices and actively seek better deals – all while trying to maintain the quality of life they value.
66% pay more attention to their budget than they did a decade ago
81% are concerned about shrinkflation and are becoming increasingly aware of pricing tactics
49% plan to reduce discretionary spending, with new clothes and accessories, eating out at restaurants, and takeaways emerging as the most listed cutbacks
Consumer concerns about household finances
Over the last decade, inflation, food prices and household bills are the top categories that consumers are most concerned will negatively impact their household finances. This indicates a shift in public attention toward cost-of-living pressures and rising day-to-day expenses.
This line chart shows how net concern among survey respondents has increased or decreased monthly from March 2024 across the following financial categories: inflation, food prices, shrinkflation, interest rates, digital content costs and rent/mortgage costs. It tracks which issues people are most concerned about in response to the survey question, “To what extent, if at all, are you concerned that the following will have a negative impact on your household finances?”
- X-axis: Time, shown monthly from March 2024 to March 2025
- Y-axis: Net percentage of respondents concerned
Each line on the chart represents one of the following categories:
- Inflation (e.g. rise in the price of everyday items)
- Food prices
- Household bills (including energy bills)
- Shrinkflation (e.g. reduction in product size of quality)
- Fuel prices
- Interest rates
- Rent and mortgage costs
- Digital content costs (e.g. streaming services, music apps)
Note – Net concern on digital content costs is measured from April 2024 onwards, as this is when the category was added the confidence survey.
Data highlights:
- Net concern on inflation measured at 87% in March 2024, 85% in June 2024, 87% in September 2024, 86% in December 2024, 87% in March 2025
- Net concern on food prices measured at 60% in March 2024, 63% in June 2024, 60% in September 2024, 62% in December 2024, 64% in March 2025
- Net concern on household bills measured at 85% in March 2024, 87% in June 2024, 88% in September 2024, 87% in December 2024, 86% in March 2025
- Net concern on shrinkflation measured at 80% in March 2024, 82% in June 2024, 82% in September 2024, 81% in December 2024, 79% in March 2025
- Net concern on fuel prices measured at 68% in March 2024, 70% in June 2024, 68% in September 2024, 70% in December 2024, 71% in March 2025
- Net concern on interest rates measured at 60% in March 2024, 63% in June 2024, 60% in September 2024, 62% in December 2024, 64% in March 2025
- Net concern on rent and mortgage costs measured at 55% in March 2024, 58% in June 2024, 57% in September 2024, 56% in December 2024, 57% in March 2025
- Net concern on digital content costs measured at 61% in April 2024, 61% in June 2024, 60% in September 2024, 61% in December 2024, 61% in March 2025
Cutting back, but not cutting out
Amid economic pressure, consumers are finding ways to stretch their budgets – cutting back in some areas to prioritise the things that matter most.
9.2% growth in non-essential spending in 2021-2024, compared to 5% growth in essential spending
67% are looking for ways to reduce the cost of their weekly shop
57% of these cost-cutters are switching to budget supermarkets
44% say they have less disposable income than 10 years ago – predominantly the 35-54 age group (50%) – yet many still prioritise emotional and experience-led purchases
What this means for brands
To connect with the future consumer, brands must go beyond discounts. They need to understand what their audience values emotionally, behave transparently, and create experiences that feel truly worth the money.
"British shoppers are savvier and more sophisticated than ever when it comes to managing their money, and have become experts at prioritising the things that really matter to them. To win new customers, and just as importantly, to keep existing ones, brands have been forced to continually innovate to meet these heightened expectations."
Karen Johnson, Head of Retail at Barclays
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