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A growing cost-of-living gap, consumers’ proactive approach to health, and the emergence of alternative social activities are among the biggest trends influencing consumer spending this year, according to WARC’s 2025 Consumer Trends Report.
Based on a comprehensive set of GWI surveys across 54 markets combined with WARC’s own research, case studies and analysis, the report focuses on five broad trends influencing brand selection: the widening cost-of-living gap, increasing trust in individual creators, AI assistants disrupting the purchase journey, consumers’ proactive approach to health, and the rise of alternative social activities.
Stephanie Siew, Senior Research Executive, WARC said, “Amidst persisting economic uncertainty and the unpredictability around US trade tariffs, consumers are becoming more intentional in their spending and taking greater control over different aspects of their lives, particularly in the way they consume information, manage their wellbeing, and connect with others.
“With this report we aim to provide a wider view of the major issues confronting our industry from the perspective of consumers, with suggestions to help businesses create the most impact in the coming year,” Siew said.
In uncertain times we crave control:
Economic uncertainty continues to cast gloom over consumer sentiment, but a shift is underway as consumers move from cautious to more intentional spending, highlighted report. An emphasis on control is also apparent other aspects of their lives, particularly in the way they consume information, manage their wellbeing, and connect with others.
Understanding shifts in consumer behaviour and the motivations behind them will help brands stay ahead of the market and maintain their relevance to customers.
- The widening cost-of-living gap: 55% of low-income consumers would rather pay less for a cheaper own-brand product than pay more for a brand they know
Within the low-income segment, 55% of consumers worldwide surveyed by GWI said they would rather pay less for a cheaper own-brand product than pay more for a brand they know. This compares to 40% in the high-income segment who said the same. The popularity of private label or own-brand products reflects consumers’ growing willingness to switch brands for better value.
- The growing credibility of individual creators: Nearly half (47%) of social media users have made purchases based on influencer endorsements in the past year
Per GWI, consumers are now more likely to get their news from social media (57%) than from more traditional channels such as national TV news (52%) and news websites (49%). Consumption varies widely by generation — 71% of Gen Z have seen, read, or heard information on news from social media in the last month, compared to 62% of millennials, 48% of Gen X, and 33% of baby boomers.
- The humanisation of AI: 24% of consumers are happy to have AI agents do their shopping for them
ChatGPT remains the most popular AI tool among consumers (45% say they have used it in the past month), but others, such as Google Gemini and Microsoft Copilot, are quickly gaining ground.
- A proactive approach to health: 77% of consumers are concerned about the associated health risks of ultra-processed foods
Nearly a third (31%) of consumers say they have purchased vitamins or supplements in the past month, up 7pp from 24% in 2022, per GWI. Research by McKinsey revealed that millennials and Gen Z in the US were more likely than their older counterparts to have purchased a health and wellness product or service.
- Rewriting the rules of social connection: Half of Gen Z (51%) and millennials (50%) play board games at least once a month
Appeal of board games to younger consumers — around half of Gen Z (51%) and millennials (50%) say they play board games at least once a month. The most commonly played games are strategy, word / trivia, and party games.
For some, a greater focus on health and wellbeing has boosted their interest in fitness and exercise (38% of consumers), sports (33%), and outdoor activities such as camping and hiking (33%).
The report mentioned that the gap between the richest and the poorest households is widening, exacerbating differences in their spending.
Meanwhile, consumer attention is increasingly shifting to non-traditional information sources, as innovation around AI agents expected to disrupt the way customers engage with brands.
Further, growing health consciousness and advancements in health tracking are empowering consumers to take more control over their health. Additionally, consumers, especially younger generations, are rethinking the way they spend time together.