Introduction
Unlocking discretionary spend
Despite persistent inflation, a cost-of-living crisis and rising interest rates, consumer spending was more robust than many would have predicted in 2023. So, what does this mean for buying behaviours in 2024?
With another year of economic uncertainty behind us, our research shows consumers remain concerned about their finances, with only a marginal improvement in sentiment since last year. Consumers’ spending intentions will continue to be impacted throughout 2024.
Meaningful growth is largely off the cards in 2024, but steady and stable spending is likely to continue.
RSM's survey of 1000 consumers unveils the pockets of opportunity for businesses to gain greater insight into those consumers that still want to get out and spend, and where priorities for spending will lie in the year ahead.
of consumers are concerned about the cost-of-living compared to 98% last year.
of consumers have no money left after paying for food, energy and household bills at the end of each month compared to 35% last year.
Who are today's consumers?
Gen Z
Gen Z are experience driven and value social activities like dining out and drinking out. Due to current economic pressures, their habits have shifted, making them more inclined to choose pubs over nightclubs or bars for socialising. This group continues to prioritise travel but will favour domestic long-stay trips over breaks overseas. Quality over price continues to shape the purchasing decisions of this group.
Millennials
Millennial’s discretionary income has been impacted most by cost of living, with half of respondents concerned about their current level of debt. This group are the most likely to increase their spending on dining out and visiting bars and nightclubs as they continue to prioritise socialising. This group are concerned about their environmental footprint and are more likely to tailor spending to meet this sentiment.
Gen X
This group shows the most concern over rising costs, and plan to cut back on essentials like energy in the home and groceries. Gen X continues to travel, prioritising extended overseas trips lasting five days or more. This group favours traditional venues like pubs and restaurants, and throughout 2024 will be increasing their visits to competitive social venues, bars and casinos.
Baby boomers
This group are least impacted by the higher cost of living. Most of this generation are uninclined to make changes to the way they spend their leisure time to reduce costs, being the least likely group to alter travel plans and reduce spend on eating and drinking out.
