Europeans set to cut consumer spending, finds Savanta

The research found that consumers were being more cautious with their spending, with one in five saying they have cut all possible expenditure and those unaffected by the rising cost of living in the minority at 15%.

The findings are based on a survey of 3,000 consumers in the Netherlands, Germany, France, Spain, Italy and the Nordic countries (Denmark, Norway, Sweden, Finland and Iceland) about spending habits, attitudes and awareness towards sustainability and data privacy, and feelings towards diversity, equity and inclusion initiatives from consumer brands.

Consumer Confidence was highest in Spain ( 87 ) and the Netherlands ( 87 ), according to the survey, but lowest in the Nordics ( 82 ).
However, a net negative score of below 100 was seen in all of the markets included in the survey, Savanta said.

The 18 to 24-year-old age group had the highest consumer confidence levels in the survey, with all markets except Italy net positive, and disposable income levels less affected than other older age groups.

Alcohol (-46%) and eating out (-44%) saw the biggest decrease in likely spending for the next three months, while groceries (+8%) and utility bills (+11%) are the only two categories where an increase in spending is anticipated.

On sustainability, 45% said it was an important issue in purchase decisions across the countries featured in the survey, dropping to 32% in the Nordic countries.

In addition to having the strongest understanding of ‘greenwashing’, 48% of Nordic consumers bought second-hand or refurbished items wherever possible, compared with 29% in Italy, 26% in Germany and 25% in Spain.

Overall, factors with a short-term direct impact, such as diversity and inclusion and data usage, were more important to consumers than sustainability factors, according to Savanta.

Despite this, most consumers know little ( 51%) to nothing ( 13%) about how their data is used.