Consumers batten down the hatches as US tariffs bite

With continuing economic uncertainty, fuelled by the US president Donald Trump’s haphazard approach to trade tariffs, consumers are becoming more intentional in their spending and taking greater control over different aspects of their lives, particularly in the way they consume information, manage their wellbeing, and connect with others.

That is the standout conclusion of WARC’s 2025 Consumer Trends report, based on a comprehensive set of GWI surveys across 54 markets, combined with WARC’s own research, case studies and analysis.

It shows the cost-of-living crisis, trust in creators, the rise of AI assistants, a proactive approach to health and new social norms will be the key issues that are likely to influence consumer purchase decisions across brands and categories over the next 12 months.

The widening cost-of-living gap: 55% of low-income consumers would rather pay less for a cheaper own-brand product than pay more for a brand they know.

Tariffs are likely to accelerate this trend. Naturally, lower-income families spend a larger portion of their income on essential goods, including more traded goods like food and apparel. Price increases in any of these areas would add substantially more strain on their budgets and reduce their purchasing power. Job losses in sectors reliant on imports are also expected to disproportionately affect lower-income families.

Within the low-income segment, 55% of consumers worldwide surveyed by GWI said they would rather pay less for a cheaper own-brand product than pay more for a brand they know.

This compares to 40% in the high-income segment who said the same. The popularity of own-brand products reflects consumers’ growing willingness to switch brands for better value.

WARC reckons marketers should respond by re-examining their target audience and adjust pricing strategies to align with changes in demand. Additionally, they should re-evaluate the value drivers for different segments and tailor communications and product offerings accordingly.

The growing credibility of individual creators. With nearly half (47%) of social media users making purchases based on influencer endorsements in the past year, consumer attention is increasingly shifting to non-traditional information sources for news and information. Independent voices such as social media influencers and content creators, which are viewed as more authentic and transparent, are gaining traction, WARC claims.

It cites GWI data which shows consumers are now more likely to get their news from social media (57%) than from more traditional channels such as national TV news (52%) and news websites (49%).

However, consumption varies widely by generation – 71% of Gen Z have seen, read, or heard information on news from social media in the past month, compared to 62% of millennials, 48% of Gen X, and 33% of Baby Boomers.

As influencers build their credibility as trustworthy sources of information, their endorsements are highly valued. Nearly half (47%) of social media users have made purchases based on influencer endorsements in the past year, with trustworthiness a key factor in purchase decisions.

WARC maintains that marketers can respond by leveraging individual voices, exploring partnerships with individual creators, tapping into their reach and reputation, or elevating the voices of in-house experts.

However, brands should also balance paid and earned media, and take a proactive approach to brand safety ensuring alignment with brand values.

The humanisation of AI. Nearly a quarter (24%) of consumers are happy to have AI agents do their shopping for them; unlike chatbots, agents can autonomously make decisions and carry out tasks on behalf of users.

OpenAI’s Operator performs tasks like filling out forms and ordering groceries, whilst Google’s Project Mariner can search flights, hotels or buy household goods but ChatGPT remains the most popular AI tool among consumers (45% say they have used it in the past month), yet others, such as Google Gemini and Microsoft Copilot, are quickly gaining ground.

Data from Salesforce shows that four in ten (39%) consumers are already comfortable with AI agents scheduling appointments, and a quarter (24%) are comfortable with AI agents doing their shopping (rising to nearly a third among Gen Z).

However, data from GWI indicates that brands should not neglect the human touch with users citing emotional connection and empathy as setting human interactions apart from AI chatbots.

The WARC report claims marketers should respond by balancing AI and human support across touchpoints and optimise search strategies to ensure brands are visible and favourably represented in AI-generated search results.

A proactive approach to health. Growing health consciousness and advancements in health tracking are empowering consumers to take more control over their health. There is a growing focus on preventative healthcare and healthy ageing.

More consumers are investing in vitamins, supplements, and other foods with functional benefits. Nearly a third (31%) of consumers say they have purchased vitamins or supplements in the past month, up 7 percentage points from 24% in 2022, according to GWI.

Over three-quarters (77%) of consumers are very or somewhat concerned about the associated health risks of ultra-processed foods.

Marketers can respond by spotlighting nutritional benefits, addressing and tailoring communications to the unique needs of customers, and emphasising a balanced lifestyle.

Brands not traditionally linked to the health and wellbeing category (e.g., soft drinks and snacks) can tap into this sector by offering ‘better-for-you’ versions of their products or positioning some products as indulgences to be enjoyed mindfully.

Rewriting the rules of social connection. Younger consumers are rethinking the way they spend time together. As people seek more meaningful ways to connect with each other, interest-led activities and hobbies are gaining popularity, leading to a boom in interest-based social clubs, both online (e.g., Letterboxd, Strava) and offline.

The cost of going out is a major factor driving this trend forward, and it is likely to continue being a concern as tariffs increase living costs.

Data from GWI highlights the appeal of board games to younger consumers – around half of Gen Z (51%) and Millennials (50%) say they play board games at least once a month. The most commonly played games are strategy, word / trivia, and party games.

For some, a greater focus on health and wellbeing has boosted their interest in fitness and exercise (38% of consumers), sports (33%), and outdoor activities such as camping and hiking (33%).

GWI data shows high consumer demand for collective, in-person experiences such as festivals and events. Over half (53%) of consumers attended a festival in the past 12 months.

Brands can respond by identifying new touchpoints to help boost brand visibility and mental availability, as well as creating opportunities for connection through a brand’s positioning or through experiential activations like pop-ups, workshops, and festivals.