Consumers worldwide prioritize climate change and the cost of living, seeking to take advantage of discounts and offers, also considering the sustainability credentials of their purchases, according to the latest EY Future Consumer Index.

The cost of living, the main concern

Based on a survey covering 28 countries and including over 22,000 consumers, the report, cited by European Supermarket Magazine, identified the cost of living (94%) and climate change (89%) as top priorities among consumers.

More than half (54%) of respondents stated that they intend to buy less in the future, with fashion accessories leading the list of product categories consumers plan to spend less on (61%), followed by toys and gadgets (51%), and clothing and footwear (44%).

Approximately three-quarters (73%) see it as an effort to save money, with 49% stating they do not need new items, and 39% considering it part of an effort to help the environment.

"Intentional Consumer"

Colette Devey, EY Ireland Partner and Head of Consumer Products and Retail, stated, "This latest Future Consumer Index reveals a more intentional consumer, highly conscious of both current issues related to the cost of living and the impact of climate change.

"Consumers are carefully considering what and where they buy, prioritizing value for money, sustainability, and questioning whether a purchase is truly necessary."

Six out of ten (61%) global respondents plan to participate in Black Friday, Singles Day, or similar sales campaigns, as holiday sales events become even more attractive to consumers, according to the report.

Seven out of ten (71%) plan to postpone some purchases until these periods, compared to half (48%) in November 2021.

The report also found a 16% increase in the number of consumers shopping "mostly or only online" this holiday season, while shoppers buying items "mostly or only in-store" decreased by 14%.

AI in Consumer Service

This trend provides companies with the opportunity to explore technologies such as Generative AI to meet consumer needs.

Devey stated, "Whether it's hyper-personalizing websites (making them unique for each visitor) or retailers using artificial intelligence to offer clothing samples or preview furniture in the consumer's own home, there are a multitude of possibilities – and it's the businesses seizing the opportunity that will continue to delight the future consumer."

Consumers increasingly seek to share the cost of Christmas and other major events by buying in advance and taking advantage of discounts and offers as part of seasonal sales, such as Black Friday and Cyber Monday.

For example, a large number of consumers in Ireland are expected to participate in festive sales this year, added Devey. Moreover, many retailers in Ireland have started their discount season.

"That's why prices and inventory will be a key priority for both consumer packaged goods companies and retailers as we head into the holiday season," she said.

Climate Change

More than four in ten (42%) global consumers are considering changing the food they consume as climate change has increased prices or restricted the availability of goods, the study shows.

Nearly three in ten (29%) say they have already been forced to make new choices. Over two-thirds (67%) of respondents attribute their efforts to drive change to their deep concern for the fragility of the planet.

According to the report, older generations are more active in adapting their lifestyles to reduce their impact, with 65% of baby boomers bringing reusable bags to the store, compared to only 43% of Generation Z.

However, when it comes to spending more sustainably, younger generations are more willing to pay a higher price.

Devey added, "Historically, there has been a gap between intention and action for governments, companies, and consumers in their efforts to address sustainability."