5 spending trends in 2024

Diageo, a multinational beverage company, has just released a survey report on consumer trends that are expected to become popular in 2024. The report emphasizes that as financial challenges arise, consumers are re-evaluating their relationship with status and luxury.

Focus on experience over show

Neo-hedonism is a consumer trend that favors meaningful experiences over ostentatious displays of wealth. It is pushing people to stop pursuing luxury and embrace the joys of the present.

In a 2023 survey by global information services company Experian, Gen Z and Millennials said they would rather spend money on experiences like concerts and travel than save for retirement.

Prioritize brands that create positive change

Consumers are increasingly aware of the environmental impact of their purchases and want to support businesses that embrace sustainability as a core value. They are increasingly concerned about the life cycle of a product, its sourcing, manufacturing, distribution, and how it is recycled, repaired, or reused.

Experts say consumers are more focused on corporate social responsibility than ever before, with support for local brands that create jobs and brands that tackle social inequality evident.

Consumption for personal happiness

Several recent studies have found that the pandemic is changing the way people think about health and well-being. Consumers are now placing greater importance on their mental, sexual, social, and financial health.

In a survey of more than 24,000 people across 31 countries, multinational market research and consulting firm Ipsos found that 78% of respondents said mental health was as important as physical health. Consumers are prioritizing products that tend to improve mood and have nutritional benefits.

Virtual reality and artificial intelligence shape how customers interact with brands

According to surveys, customers are spending more money on digital goods and experiences. They are using VR and AR (augmented reality) to try on clothes before buying or to visualize how new furniture will look in their home. In particular, many of the personalized shopping recommendations are generated by AI.

Consumers will be drawn to personalized products that mimic in-store shopping, Diageo said, and e-commerce platforms need to undergo a virtual transformation to match consumer expectations to improve online shopping satisfaction.

Connecting for common interests

Consumers in 2024 are predicted to seek out spaces to connect with like-minded individuals. Many online and offline communities are being established, helping individuals meet based on common interests, regardless of nationality or geography.

For brands, this is an opportunity for them to interact with their fan community through limited-time offers or appointing celebrity ambassadors.