The pressured state of global consumers
Consumers have been tested in more ways than one over the past year—and beyond. The unease of living life disrupted by not one, but a multitude of unpredictable circumstances, has left its mark on the world and shifted consumer sentiment yet again.
The global state of consumers right now is pressured. But compounded pressures often give way to promise and opportunity. The good news for brands and retailers: pockets of growth have emerged as consumers pivot spending behaviors to survive and thrive.
As you think and strategize around both the pressure points and pockets of growth that influence consumer sentiment and spending, NIQ has summarized the top consumer trends and strategic insights to help your organization succeed:
Promote with purpose
Acknowledge that there is a concerning value and volume slowdown occurring. As inflation decelerates, the slowing of value sales growth will no longer hide low or declining rates of volumetric consumption. Respond strategically to avoid over-promoting to support your bottom line.
Value and Volume slowdown
As inflation decelerates, the slowing of value sales growth will no longer hide low or declining rates of volumetric consumption.
+6.1%
CPG/FMCG average price increase in Nov. 2023, compared to +13.6% in Jan. 2023
-1%
Annual global volume decline in 2023 vs. +9% sales growth
0%
Monthly global volume growth in Nov. 2023 vs. +5% sales growth
Source: NIQ Retail Measurement Services via Global Inflation Tracker, Total FMCG/CPG, Sales and Eq. Vol growth, Eq. Vol % Price Change, Latest month and year ended Nov. 2023 vs. year-ago, sales reflected in USD
Maximize assortment
Recognize that there are now hybrid views on the concept of “value.” Financial polarization between affluent and vulnerable consumers is driving an expanded search for value options, blending quality and affordability uniquely. Anticipate demand for a new echelon of affordable product assortment in 2024 (and beyond).
Hybrid views on value
38%
of global consumers consider themselves financially vulnerable (income impacted in last 3 years)
Value players grow
Value price tiers (products sold at more than 10% discount) were the only group to see sales share growth (+0.6 pts) in a 2023 custom analysis
Sources: 1) NIQ 2024 Consumer Outlook, 2) NIQ Retail Measurement Services via Global Strategic Planner, Super-category level analysis across 20 markets, Latest year ended Oct. 2023 vs. year-ago
Innovate to stay relevant
Understand that innovation growth should be targeted to support both value and volume increases. Companies who have continuously innovated have benefitted the most during times of market slowdown. Innovation isn’t only for premium-positioning, and companies will need to harness “value-driven” pursuits to breakthrough.
Value-focused innovation growth
1.8x
Manufacturers who innovate are 1.8 times more likely to grow overall sales, and those who innovate during times of crisis outperform those who don’t
63%
of global consumers say they would purchase a product that has innovated to make it as affordable as possible
Sources: 1) NIQ BASES, 2) NIQ 2024 Consumer Outlook
Reach consumers where they are
Remember that consumers move fluidly across channels to fulfill their needs. The shopping game continues to change—remapping where consumers discover, try and buy and who holds the cross-channel power. Embrace channel nuances to reach consumers who are seeking category staples around the world.
Fluid channel dynamics
24%
of global consumers say they shop around at different stores for groceries more than a year ago
11%
of global consumers say they have shopped via social media channels before
Source: NIQ 2024 Consumer Outlook
Make shopper-centric decisions
Personalize your approach to providing value to key consumer segments. Consumers are under pressure. Unemployment rates remain steady, but wages continue to lag behind inflation rates. As factors like global crises (and conflict escalation) rise to consumer consciousness, expect heightened competition for a smaller pie of consumer spending.
Consumers under pressure
Top
consumer concern
Global crisis escalation ranks as a top global consumer concern (#4, up from #11). First priorities remain costs of living and economic downturn.
34%
of global consumers feel worse
Majority feel worse off financially than a year ago. Static compared to Mid 2023. Majority (77%) are worse off due to costs of living.
Source: NIQ 2024 Consumer Outlook
Lastly, be proactive and precise with wellness
Uncover the holistic, lifestyle-driven and attribute-focused growth waiting for your organization to capitalize on. Wellness-focused spending is a pocket of growth that should not be overlooked in today’s challenged marketplace. Consumers indicate that they see the value and importance of proactive health management, and that they are seeking specific lifestyle shifts and product attributes to achieve their health goals.
Proactive and precise with wellness
#1
life priority
Global consumers rank supporting their health & wellness in their top life priorities
40%
of global consumers
Say they’re being proactive with health to prevent future issues
Source: NIQ 2024 Consumer Outlook
Capitalizing on consumer behavior shifts
Ultimately, any assessment of consumers’ outlook for the year is highly nuanced. The last four years (or longer) have reminded us that the global consumer ecosystem is heavily influenced by both personal circumstances and major societal change. Headed into a year saturated with worldwide elections and multiple other disruptions and factors—such as escalating conflict, extreme weather events, supply chain hurdles and more—it’s never been more important to seize on growth opportunities aligned to consumer behavior shifts.
Daily consumer decision making and spending is rarely done in isolation of broader socio-economic factors. Companies who succeed in capturing demand this year will need the broadest and fullest view of how people earn, think, plan and spend their resources.
Enter NIQ. The world’s most complete and clear view into consumer buying behavior. Reveal your 2024 pathways to growth using the most trusted and comprehensive data to get there.
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