Rising interest rates have been felt by consumers, forcing cutbacks in spend and a focus on debt. Optimistic outlooks persist, sustaining hope for growth in 2024.
Patrick Rahlfs, Senior Research Analyst
Collapse All
-
EXECUTIVE SUMMARY
- What you need to know
- Consumer trends: key takeaways
- Moderate changes are common as consumers feel the pinch
- Graph 1: changes in managing finances due to inflation, 2023
- Consumers tighten their belts, but remain optimistic about the near-term future
- Graph 2: financial outlook for next 12 months, 2023
- 35-54 year olds juggle leisure and loans
- Graph 3: use of extra money to pay off debt, by age, 2023
- Opportunities
- Act upon young consumers' investment ambitions
- Questrade seeks to make investing less complicated
- Combined accounts can address new Canadians' goals
- National Bank of Canada offers newcomer-specific benefits
-
Consumer Insights
- Effects of inflation on finances
- 60% of consumers have made at least moderate changes due to inflation
- Graph 4: changes in managing finances due to inflation, 2023
- Lower-income segments have been most affected by inflation
- Graph 5: changes in managing finances due to inflation, by household income, 2023
- Major changes due to inflation peaked among 25-34 year olds
- Graph 6: changes in managing finances due to inflation, by age, 2023
- Most new Canadians made at least moderate changes due to inflation
- Graph 7: changes in managing finances due to inflation, by new Canadians, 2023
- More than 50% of South Asian consumers have made moderate changes due to inflation
- Graph 8: changes in managing finances due to inflation, by race, 2023
- Spending behaviors
- Consumers hope to have finished cutting back on spending, look to invest more
- Graph 9: savings and spending behaviors and plans, 2023
- Travel plans may shift from domestic to international
- Graph 10: travel and large purchase behaviors and plans, 2023
- Young consumers have the most desire to increase investments
- Graph 11: putting more money into investments, by age, 2023
- While plans to invest are unanimous, ability to invest differs by income
- Graph 12: putting more money into investments, by household income, 2023
- 35-54 year olds have cut back on spend, but hope to be done
- Graph 13: cutting back on my overall spending, by age, 2023
- New Canadians look to save and invest
- Graph 14: plans to add more to savings and investments, by new Canadians, 2023
- Debt reduction remains a key focus for struggling consumers
- Graph 15: reducing non-mortgage debts, by financial situation, 2023
- Use of extra money
- Saving is the distinct top priority for extra money
- Graph 16: use of extra money, 2023
- Young consumers turn to gifts and entertainment, while dining and travel skew older
- Graph 17: use of extra money, by age, 2023
- Debt is a key focus for 35-54 year olds
- Graph 18: use of extra money to pay off debt, by age, 2023
- Higher earners balance debt with other necessities
- Travel and investment are heavily income-dependent
- Graph 19: use of extra money toward travel and investments, by household income, 2023
- Past and future financial outlook
- More consumers are worse-off compared to last year
- Graph 20: financial situation now vs a year ago, 2023
- Nearly half of 45-54 year olds are worse-off
- Graph 21: financial situation now vs a year ago, by age, 2023
- Inflation concern waned toward the end of 2023
- Graph 22: rising prices as top-three concern for next 6 months, 2022-23
- The most common inflation-impacted categories are normalizing
- Graph 23: effects of inflation, 2023
- Younger consumers are the most optimistic
- Graph 24: financial outlook for next 12 months, by age, 2023
-
State of the economy
- The Canadian economy contracted in Q3 2023
- Graph 25: quarterly real GDP growth, 2021-23
- Policy rate sits at 5% heading into 2024
- Graph 26: policy interest rate, by month, 2020-24
- Inflation has subsided, but remains over 3%
- Graph 27: CPI change over last 12 months, 2020-23
- Credit card interest rates have risen, reflecting policy rates
- Graph 28: average purchase regular APR in credit card acquisition direct mail, 2020-23
- Low rates on intro periods will be valued in 2024
- Unemployment ticked up toward the end of 2023
- Graph 29: unemployment rate, 2020-23
-
Appendix
- Consumer Research Methodology
- Generations
- Abbrevations and terms
Market Intelligence Made Easier With Mintel
The first Mintel Market Intelligence report was published over 50 years ago. Since then, we have provided our unique insights and understanding of consumers, innovation and global markets to thousands of customers worldwide. Here’s why our customers rely on Mintel:
- Gain a comprehensive, 360-degree view of the market: Mintel reports blend consumer research, market forecasts, product innovation tracking, and competitive analysis, allowing businesses to see every angle of their industry and identify new opportunities quickly.
- Make decisions with confidence, grounded in robust data: Each report draws on up-to-date, reliable information from trusted sources and industry experts, ensuring your strategies are based on solid evidence rather than speculation.
- Benefit from expert analysis and practical recommendations: Mintel’s reports are written by experienced analysts who interpret complex data and provide clear, actionable insights you can trust to guide your next moves.
- Stay ahead with actionable intelligence on market trends and consumer behaviour: By combining fresh research with long-term market monitoring, our reports help businesses anticipate changes and adapt strategically. So you’re prepared to make informed decisions and drive growth.
What goes into a Mintel Market Intelligence Report?
Curious about how a Market Intelligence report comes together? We like to think of it as building a detailed puzzle. We start with individual pieces: data from consumers, market statistics, industry trends, and online conversations. Then our expert analysts add world-class human insight and industry knowledge. The pieces are assembled to reveal a clear, comprehensive picture of a market.
The Four Pillars of Our Research
We use a combination of four main research methods when creating our reports, each adding a valuable perspective:
- Consumer Research: Direct surveys with real people, giving us clear, current insights into what people think and do.
- Desk Research: In-depth review of trusted data sources. We use this rich database, plus powerful internal tools that track new products and market sizes, to detect trends and guide forecasts.
- Trade Research: Insights from conversations with industry experts. Their real-world experience helps us understand what’s happening behind the scenes.
- Brand and Social Media Research: Analysis of online opinions and trends. This lets us spot trends, measure brand sentiment, and capture feedback in real time, adding further depth to our research.
Bringing It All Together
Each of these four pillars provides a different piece of the puzzle. Consumer research tells us what customers think, desk research provides the factual framework, trade research offers an insider’s view, and social media analysis reveals public sentiment.
Our expert analysts are skilled in weaving these diverse data streams together. They apply a range of quantitative and qualitative analysis techniques to uncover the deeper story, connecting the dots to deliver clear, actionable insights. This comprehensive, multi-layered process is how we transform raw data into a market intelligence report you can trust to inform your most important business decisions.
For a closer look at a Mintel Market Intelligence Report, take a look at the sample PDF report below:
Please Note: All of the figures, graphs, and tables in this sample report have been redacted.
$ 4,995 (Excl.Tax)
-
Download today with instant access
Pay via credit card or invoice (net 30 payment terms)
-
Multiple formats provided
We send a PDF, Powerpoint and Excel Databook straight to your inbox. An interactive version of the report is also available on our online platform
-
Interactive databook included
Focus on the data that matters most to you with a customisable databook avaliable on our platform
Next Starts Here
Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.
Learn moreTrusted by global industry leaders
Working in a customer-obsessed organization means that data and insights have to be at our fingertips. Mintel’s reports help us support anecdotes with real quantifiable insights. The summary sections (which I really like) helps save time by giving a birds eye view of the content before spending time combing through the pages.
Our business review discussions are strengthened by the relevancy of the reports to help us better understand our customers. In addition, the customer service received from the team (especially in crunch periods) makes the process of understanding customer behavior even better.
Ngozi Ngonadi-Nkwoji, Senior Marketing Manager, Amazon
Mintel is really good for getting a handle on a particular category quickly. If we are working on a new business pitch in an area we don’t have much experience in, it’s a brilliant way to get up to speed with what’s going on, what’s changing and what the key trends are in any category.
It’s very rare now that anyone will plough through a 200-page report – that’s why the summaries are really useful. We know they are backed up by a lot of detail, so if you need to go into something in more depth you know the information will be all there for you.
Pauline Robson, Managing Partner, Mediacom
At Jackman, we believe that powerful strategies are based on human insight. Mintel’s leading-edge reports and insights into consumer attitudes and behaviors are an important input as we develop and execute strategy.
Alana Gavin, VP Research and Insights, Jackman
There is no question that Mintel is the go-to resource for the best quality market research, but I did not think it was an affordable option for Abacus Marketing to consider. As a small marketing agency, we only work with a few new clients each year.
However, we have a very high-end consultative approach to our work, so we really do need a partner like Mintel to provide the big agency experience we are always aiming to deliver. Our clients come from an incredibly diverse range of industry sectors, so we obviously need access to market research reports from a very wide spectrum of marketplaces – and that is precisely what we got.
Stephen Taylor-Brown, Managing Director, Abacus
One of the biggest challenges we face is the need to get smart on a business or category real quick.
We are talking to clients who live and breathe their category every day and the expectation is that we will be able to get caught up very quickly, and bring the thinking that can help them.
We need to do that often in a matter of days, so it’s not a small ask. Mintel gives us a very articulate view of category conditions and does so at the speed we need it.
Jeff White, Business Development Director, Deutsch
Next Starts Here
Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.
Learn more
