‘Grocery, household items among top categories consumers plan to spend more’

More than half of UK consumers feel they are in a worse financial position this year compared to a year ago, with most feel that they are living in a recession, claims a recent industry report, highlighting consumer outlook for 2023

According to data in NIQ’s Consumer Outlook 2023 – the latest global NielsenIQ Thought Leadership report capturing the mindset and sentiment of consumers in France, Germany, Italy, Spain, UK, Poland, South Africa, Saudi Arabia, Egypt and Turkey,  56 per cent of UK consumers feel they are in a worse financial position this year compared to a year ago, with 84 per cent of them saying they already feel that they are living in a recession – well above the global average of 62 per cent.

Increasing utility bills, such as electricity, gas and heating (54 per cent) is the biggest concern for UK consumers over the next 12 months. This is more than double the average (22 per cent) of those surveyed globally. Utilities (67 per cent) is also the top category UK shoppers expect to spend more on in 2023, followed by grocery and household (40 per cent) and transport costs (34 per cent).

To manage expenses, 34 per cent of Brits plan to monitor the cost of their overall basket of goods, as well as shop at stores with loyalty points (34 per cent) and opt for private label/store brands (31 per cent). Only 12 per cent of UK consumers surveyed said they would stick to their regular brands, irrespective of price.

“In line with figures of mid-year 2023, consumers feel financially pressured compared to a year ago, but resilience is evident,” says Lauren Fernandes, Global Director, NIQ Thought Leadership. “A look at the consumer wallet for the year ahead proves that people are committed to maintaining or even growing their spending on categories they feel will propel them toward health and prosperity in the longer term. And to the benefit of consumer goods brands across the world, grocery and household items are among the top categories consumers plan to spend more on this year.”