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'Rising food prices, Big Night In, private labels to shape spending in 2025'

'Rising food prices, Big Night In, private labels to shape spending in 2025'
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Consumers remain determined and resilient despite the uncertainty, states NielsenIQ (NIQ)'s recently released "Mid-Year Consumer Outlook: Guide to 2025" report, providing a strategic roadmap for retailers looking to win over consumers over the next 12–18 months and beyond.

The NIQ report anticipates that global consumers will spend $3.2trn more in 2025, representing nearly 6 per cent growth compared with 2024.


With looming uncertainty around geopolitical crises, economic stability, and environmental health, NIQ found that consumers are becoming resilient and are spending where it matters most.

“There is increasing demand for AI-driven insights based on large quantities of granular data that only NIQ can deliver,” said Tracey Massey, COO of NIQ. “Having your finger on the pulse of current and expected consumer behaviour that is benchmarked globally is now table stakes to establish and maintain any competitive advantage.”

Among the thing mentioned "global catalysts to change in 2025", NIQ states that 60 per cent of respondents said they will buy fewer snacks and confectionery products if prices continue to increase or remain high for the next three months – the highest "dropout" response across all surveyed categories.

Cocoa (+128 per cent), Coffee (+43 per cent), and Milk (+44 per cent) are “hot commodities,” according to measures by Trading Economics, with rising prices impacting volume sales of related categories/products.

Rising food prices (33 per cent), followed by increasing utilities costs (20 per cent), and the threat of an economic downturn (19 per cent)​ emerged as top trends expected to frame spending in 2025. Climate change is fourth (14 per cent), owing to the numerous extreme weather events around the world.

A majority (67 per cent) of surveyed consumers around the globe said they are likely to change or try a new brand because of lower pricing.

They intend to continue cutting back on non-essentials like Out-of-Home (OOH) Dining (38 per cent), Out-of-Home Entertainment (37 per cent), and Food Delivery/Takeaways (36 per cent)​. Expect to see decreased spend on OOH activities, while intentional choices around In-Home Entertainment (48 per cent) and spending on Socialising/Gatherings (46 per cent) are likely to be maintained in 2025.

Meanwhile, private-label product interest continues to rise, with 50 per cent of consumers buying more private-label products than ever. What’s more, 40 per cent of global consumers say they would switch to a private-label product they enjoy, even if it costs more.

“Over the past six months, there has been a determined shift from cautious to intentional consumption habits. Consumers are willing to spend more but remain conscious of potential changes,” said Lauren Fernandes, VP Global Thought Leadership, NIQ.

“Consumers are seeking value with every purchase in multiple ways. They are spreading their spending very purposefully – and expect to leverage any excess in strategic ways in 2025 and beyond.”