Consumer Outlook
2025
Our latest survey of 2,000 consumers reveals the key trends driving purchasing decisions in 2025. In this report we explore the evolving shifts in consumer sentiment, uncovering opportunities for businesses to engage with those ready to spend.
While over 52% of consumers report feeling financially comfortable, a cautious mindset persists, with many planning to cut back. For businesses, this presents a clear challenge: how to balance consumer needs with strategies that inspire spending and build brand loyalty.
By focusing on key spending categories and exploring the motivations driving purchasing decisions, this outlook offers actionable insights to help businesses align with changing consumer priorities in the year ahead.
As consumer priorities shift, this report provides the insights businesses need to anticipate change, adapt strategies, and lead with confidence in a dynamic market.
JACQUI BAKER
Head of Consumer Markets and Retail,
RSM UK
Who are today’s consumers?
Gen Z
Gen Z, the first generation to grow up with the internet and smartphones, are true digital natives.
The older half of this group is now transitioning into adulthood, starting university, beginning their careers, or even buying their first homes, meaning their purchasing power and disposable income are set to grow.
When shopping, Gen Z places a high value on quality and value for money. Convenience and promotions are key factors in their retail choices, with a strong preference for health and beauty products. In leisure and hospitality, their habits are shifting; they favour restaurants over pubs and nightclubs and often choose short international trips for travel.
Millennials
Millennials are still feeling the impact of the cost-of-living crisis, with many experiencing increased expenses in housing and energy. However, their outlook is improving, with over half reporting they feel at least somewhat financially comfortable.
Millennial spending is heavily influenced by value; they aim to make their hard-earned money stretch as far as possible. Socialising and dining out remain high priorities for this group, and travel continues to be a key interest, with many planning more short overseas trips.
Gen X
Gen X expresses the most concern about rising costs, and their sense of financial comfort has dipped. Known as the ‘sandwich generation’, many Gen Xers balance caring responsibilities for both children and ageing parents.
This group is the most likely to cut back on dining out and fashion spending, but they still prioritise travel, especially extended trips abroad lasting five days or more.
Baby boomers
Baby boomers are the least likely to increase spending in 2025. Like Gen X, they are concerned about rising costs, with nearly one-third expecting their financial comfort to decline in the coming months.
While slower to adopt online shopping in the past, that trend is changing. Now, 50% report making online purchases each month. Travel is a top priority for Baby boomers, and they are less inclined to cut back on this area.
About the research
RSM UK commissioned 3Gem to carry out a survey of 2,000 consumers across the UK. The survey was in field between 25 September and 2 October 2024. Chart percentages may not equal 100% due to rounding. Gen Z refers to respondents aged 18-24; Millennials refers to those aged 25-44; Gen X refers to those aged 45-54; and Baby boomers refers to those over 55.
