More than half (56%) of UK consumers feel they are in a worse financial position this year compared to a year ago, with 84% of Brits citing they already feel that they are living in a recession, new research reveals.
The NIQ’s Consumer Outlook 2023, the latest global NielsenIQ Thought Leadership report, reveals that 74% of total global respondents say that increased costs of living are to blame for their recent financial struggles, but this figure rises to 83% for the UK. Meanwhile, 34% of Brits state they are worse off due to the economic slowdown.
Increasing utility bills, such as electricity, gas and heating (54%) is the biggest concern for UK consumers over the next 12 months. Utilities (67%) is also the top category UK shoppers expect to spend more on in 2023, followed by grocery and household (40%) and transport costs (34%).
The analysis also highlighted:
- Out-of-home dining/eating (51%) is the top three area where UK shoppers are looking to cut back on over the next 12 months.
- In terms of strategies to manage expenses, 34% of Brits plan to monitor the cost of their overall basket of goods, as well as shop at stores with loyalty points (34%) and opt for private label/store brands (31%).
- Only 12% of UK consumers surveyed said they would stick to their regular brands, irrespective of price, while just 11% state they have not changed the way they shop at all.
Lauren Fernandes, Global Director, NIQ Thought Leadership, said: “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.”
