In a recent interview with Wealth!, NIQ COO Tracey Massey shared some key insights from Nielsen IQ’s latest consumer outlook report. According to Massey, consumer spending is projected to increase by 6% in 2025. While this may seem high to some, Massey points out that 30% of consumers feel they are in a better financial position than they were a year ago.
Despite ongoing economic challenges, many consumers are planning to be more cautious with their spending. Massey notes that people are likely to cut back on expenses related to out-of-home entertainment and dining. This shift in consumer behavior reflects a greater emphasis on saving and financial responsibility.
Massey also highlights the growing influence of artificial intelligence (AI) on consumer purchasing decisions. She mentions that 40% of consumers are open to using AI-driven product recommendations. This suggests that consumers are becoming more receptive to technology playing a role in their shopping experience.
The acceptance of AI as a tool for personalized recommendations indicates a shift in consumer attitudes. Rather than viewing AI as intrusive, many consumers now see it as a helpful resource for discovering new products and making informed choices.
Overall, the consumer outlook for 2025 is characterized by a mix of optimism and caution. While there is a willingness to increase spending, consumers are also mindful of the need to prioritize financial stability. By adapting to changing economic conditions and embracing new technologies, consumers are navigating the evolving landscape of retail and consumption.
For more in-depth analysis and market insights, be sure to watch the full episode of Wealth! to stay informed about the latest trends shaping consumer behavior and spending patterns.