Food and travel brands to benefit from spending spree

The cost of living crisis might not have receded far – if at all – but food and travel brands are way out in front when it comes to UK consumers’ spending plans for the year ahead, despite many vowing to save money in their New Year’s resolutions.

So says a new study by out of home specialist Clear Channel, conducted via OnePoll, which quizzed 2,000 consumers on their shopping intentions for the next 12 months.

In total, consumers are expecting to increase spending on food (36%), travel (31%), household items (23%), clothing (19%), entertainment (14%), drinks (10%), toiletries/cosmetics (9%), shoes (8%) and bags (6%), although one in five Brits (20%) are determined to not increase their spending on any products/services at all.

The study also reveals that Gen Z (41%) and younger Millennials (27%) expect to increase their spending on clothing more than older age groups, while the latter expect to spend more money on food.

Interestingly, 47% of Brits purchase products specifically to aid them in achieving their New Year’s resolutions, with 44% admitting to ultimately regretting these purchases.

When asked about openness to new brands, Gen Z shopping habits suggest they are more likely to step out of their comfort zone and experiment with new brands than older generations.

One in five (21%) of 18- to 24-year-olds and nearly a quarter of 25- to 34-year-olds (24%) claim to want to try new brands. That figure is almost three times higher than those aged 45 and over.

Food (47%), clothing (35%), household items (31%), toiletries/cosmetics (28%) and drinks (24%) were revealed as the top product categories people are looking to try from a different brand.

When it comes to main motivators for trying new products, the most popular responses were: when recommended by a friend (52%), when being exposed to advertising (23%), around specific occasions of the year (22%), the beginning of the year (20%) and when the product goes viral (18%).

Clear Channel marketing director Ben Hope said: “Our study shows that while the younger generations are prioritising money saving for 2025, they are also more open to trying new brands after becoming aware through advertising – particularly Gen Z and Millennials.

“This suggests they are a perfect target for marketers who plan to expand their reach. Our study will help brands to better understand key opportunities this year and give them a better idea of how their customers plan to spend their money in 2025.”

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