Rising food prices (33%), increasing utilities costs (20%) and the threat of an economic downturn (19%), are the main challenges currently facing consumers, according to NielsenIQ.
The consumer intelligence company has released its Mid-Year Consumer Outlook: Guide to 2025 report, identifying macro catalysts across industries.
“Over the past six months, there has been a determined shift from cautious to intentional consumption habits,” said Lauren Fernandes, vice president, Global Thought Leadership, NIQ.
"Consumers are willing to spend more but remain conscious of potential changes."
Private Label
The report finds that a majority (67%) of surveyed consumers around the globe say they are likely to change or try a new brand because of lower pricing.
According to the data, 50% of consumers are buying more private label products than ever while 40% of global consumers say they would switch to a private label product they enjoy, even if it costs more.
“Consumers are seeking value with every purchase in multiple ways," said Fernandes.
"They are spreading their spending very purposefully—and expect to leverage any excess in strategic ways in 2025 and beyond.”
Rise Of AI
Unlike previous years, NielsenIQ said it is essential for companies to assess which AI advancements are going to appeal to consumers and provide options to support older consumers.
The report shows that 40% of consumers would accept a product recommendation from their AI assistant, and 40% would leverage AI to automate and speed up their everyday shopping decisions.
"There is increasing demand for AI-driven insights based on large quantities of granular data that only NIQ can deliver," said Tracey Massey, COO of NIQ.
"Having your finger on the pulse of current and expected consumer behaviour that is benchmarked globally is now table stakes to establish and maintain any competitive advantage."
