USA | More than 75 percent of global consumers have expected to reduce or maintain overall spending in 2025.
According to the 2025 Consumer Outlook published by AlixPartners, this intention could result in less of the budget being devoted to several priorities, including eating out, out-of-home entertainment, and retail purchases other than food.
Based on responses from 15,434 consumers from nine countries, the report showed spending increases anticipated by consumers in China and the Middle East more than offset by expected restraint in the U.S. and Europe.
According to respondents, grocery was the lone category where consumers expected to spend more regardless of where they lived. Persistent food price inflation and the cost of other necessities resulted in lower discretionary spending.
The research conducted in September and October showed that global net consumer intent for spending will decline by 12 percent in 2025 compared to this year’s already-muted spending levels, likely spelling another challenging year for consumer-facing industries.
European and older consumers intended to show the most restraint, while younger and wealthier consumers intended to open their wallets a bit wider next year.
"Consumers tell us that while price matters, it is only part of the equation,” said Randy Burt, a partner and managing director with AlixPartners.
“The desire for value goes beyond seeking the cheapest deal. Quality and satisfaction are critical in shaping purchasing decisions, especially as consumers adjust budgets and spend less on non-necessities.”
Consumers in China, where inflation and unattainable housing prices influenced spending plans, survey respondents said higher spending in 2025 was partially due to inflation but also driven by a desire to attain immediate gratification.
While U.S. consumers have generally been more frugal in the new year, their plans could change based on economic factors.
When polled in September and October, respondents in the U.S. reported a 16 percent net decline in global spending intentions, lower than France, the U.K., and Germany but on par with Italy and Switzerland.
However, a U.S. consumer pulse survey conducted by AlixPartners after the presidential election revealed a 14-percentage point net positive shift toward spending more in 2025.
“Price sensitivity has increased significantly over the past 24 months, with consumers limited in their capacity to keep up with the cost of travel, out-of-home experiences, and other discretionary products and services,” said Beatrix Morath, a partner and managing director and global co-leader of AlixPartners’ Hospitality andTravel Practice.
“For operators, this creates challenges on multiple fronts. They need to figure out how to optimise business models to maintain competitiveness, earn customer loyalty and drive demand.”
AlixPartners’ survey also identified six reasons why consumers will spend less in 2025. These included less money to spend, spending priorities being reordered, at-home media options readily available, the value-for-cost equation being unattractive, a broad effort to lead a healthier lifestyle, and a desire to minimise food waste.
“The 2025 Consumer Outlook reveals how dynamic economic realities and an ever-changing marketplace impact the consumer’s intentions going into a new year,” said Burt.
“Understanding the balance of necessity, value and customer experience will be crucial for companies navigating this complex spending landscape.”
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