The latest WARC 2024 Global Consumer Trends report reveals a significant increase in consumer confidence, with 61% of respondents expecting their finances to improve over the next six months. The report delves into key issues shaping consumer purchase decisions across brands and categories, with detailed regional insights for Asia-Pacific, Europe, and North America.
Drawing from extensive GWI surveys and WARC’s own research, case studies, and analysis, the report provides a comprehensive overview of the major issues facing the advertising industry from the consumer’s perspective, offering actionable insights for businesses to maximize their impact in the coming year.
Stephanie Siew, Senior Research Executive at WARC, states: “2023 was a year of resilience, with consumers persevering through persistent high inflation and subdued economic growth. Today, consumers feel more optimistic about their financial situation but remain cautious. Lingering economic uncertainty and high living costs force trade-offs, such as moving back in with family for additional support. At the same time, advancements in AI generate interest, particularly its potential to make cost-cutting easier and more efficient.”
Five Key Consumer Trends Identified:
- Cautious Optimism Drives Changes in Spending:
- Three in five consumers (61%) believe their finances will improve in the next six months.
- Younger consumers are particularly optimistic, with 68% of Gen Z and 65% of millennials expecting financial improvement compared to 29% of baby boomers.
- Despite ongoing financial pressures, the travel and tourism industry is experiencing a post-pandemic boom, with the IATA predicting a record 4.7 billion passengers will fly globally in 2024.
- Rising Temperatures Shift Spending Patterns:
- Nearly half of consumers (48%) have considered purchasing products to help with cooling due to intensifying hot weather from climate change.
- Purchases of air conditioning units have surged by 358% since 2020.
- Brands are encouraged to cater to consumers’ changing needs and re-evaluate seasonal marketing efforts to reflect longer periods of warm weather.
- The Rise of Multigenerational Households:
- High living and caretaking costs are leading to more multi-generational living arrangements.
- In 2023, 24% of full-time and stay-at-home parents lived with their own parents, up from 15% in 2020.
- Marketers should consider the diverse nature of modern families and adapt products and marketing strategies accordingly.
- AI Creates New Expectations for the Purchase Journey:
- Over half of consumers (51%) use AI tools for price comparisons.
- Consumers show interest in using AI for tasks such as meal planning (28%), travel recommendations (26%), and fashion recommendations (22%).
- Brands should integrate AI at every stage of the customer journey and address privacy concerns to build trust.
- The Resurgence of Live Events:
- Demand for in-person experiences is boosting the live music and sports industry.
- In Q1 2024, 16% of consumers purchased concert tickets, driven by major tours and events.
- Marketers should explore event partnerships and ways to reach fans across different touchpoints beyond the event.
Grace Kite, CEO, and Charles Cleasby, Senior Economist at Magic Numbers, remark: “In 2024, inflation is slowing, but that doesn’t mean the episode is over. Prices are still going up, just more slowly. For consumers, nothing’s getting cheaper.”
Marketers are advised to maintain investment in brand-building, add value to products and services, and target areas where consumer spend is likely to increase.
The WARC 2024 Consumer Trends report, part of WARC’s Evolution of Marketing programme, offers in-depth insights and is available with complimentary sample reports featuring global and regional insights for Asia-Pacific, Europe, and North America.
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