While significantly lower than 2023’s 4.1% growth, consumer card spending increased in 2024, up 1.6% compared to the previous year, according to Barclays, which has highlighted a rise in affordable treat purchases.
The bank revealed that essential spending grew just 0.9% in 2024, down from 3.9% last year, as spending on fuel fell while supermarket growth slowed. Non-essential spending increased 1.9%, as consumers’ strong appetite for ‘little luxuries’ boosted health and beauty, entertainment and digital content, but still lagged behind 2023 levels (4.2%).
The report identified that many Brits adopted a “treat yourself” attitude in 2024 with nearly half (46%) saying they prioritise spending on small, affordable, mood-boosting luxuries such as pastries, even while tightening budgets. Baked goods were a particularly popular ‘pick-me-up’, chosen by 43% at an average monthly spend of £22 each, with crookies (a croissant and cookie hybrid) and pistachio desserts among the year’s top trending treats.
Almost two thirds (64%) of cost-conscious Brits noticed ‘double-dip’ shrinkflation in 2024, where products go through two or more rounds of size reductions without a corresponding drop in price. According to this group, the five most cited products hit by ‘double-dip shrinkflation’ were chocolate (54%), crisps (39%), packs of biscuits (34%), snack bars (32%) and sweets (32%).
Meanwhile, almost half (45%) said they were cooking more at home to save money.
Growth in supermarket spending slowed to 1.3%, down from 6.5% in 2023. In a year of determined budgeting, cost-conscious shoppers continued to look out for loyalty scheme discounts and supermarket deals. Encouragingly, Barclays Consumer Confidence data found over a third (36%) of shoppers have noticed food prices rising at a slower rate in recent months.
Karen Johnson, Head of Retail at Barclays, said, “2024 demonstrated Brits’ strong appetite for experiences very clearly, spending selectively elsewhere in order to find room in their budgets for the moments and treats that the most matter to them.”
She predicted that this “conscious consumerism” would continue to shape spending in the new year as Brits continued to embrace their “new essentials”.
