UK Consumers and the Cost of Living Market Report 2023
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The Consumers and the Cost of Living Market Report 2023 provides comprehensive data and invaluable analysis on the cost of living crisis in the UK. Our research examines the impact on consumer financial wellbeing and behaviour, cost of living statistics UK, and the latest trends. Gain insight into how to respond to changing consumer demands and stay ahead of your competition with our cost of living market research.
The year 2022 was defined by rapidly rising inflation. The squeeze on household incomes has had a profound impact on how people feel about their finances. Not only that, but the cost of living crisis has prompted widespread changes to consumer behaviour. One of the most striking Mintel findings is that almost half of the remote workers are planning to reduce the time they spend working at home as a direct response to increased energy costs. Remote working was a key driver of the pandemic boom in savings as workers saved on commuting and other work-related costs. As energy prices have spiked, however, this benefit has been diminished.
The biggest behavioural changes have been seen in consumer shopping habits. Consumers are taking a more cautious approach and going to the shops more prepared, such as following a stricter shopping list, buying more reduced items or trading down to cheaper ingredients.
High inflation is no longer the only major threat to household finances. The Bank of England has repeatedly increased the base rate of interest in an attempt to bring inflation back under control, most recently raising it to 4% in February 2023. This has had a knock-on effect on the cost of servicing debts. Already by October 2022, over half of UK adults were worried about the impact of rising interest rates on their finances, rising to four-fifths of mortgage holders.
Retailers can assist consumers making savvier shopping choices by publishing and promoting low-cost recipes and educational content around how to replace expensive items with cheaper, but still nutritious ingredients. Such strategies will be particularly appealing to younger consumers, who are more likely to say they have changed their cooking habits, but are the least experienced and therefore least likely to have the knowledge and skills to do so successfully.
In October 2022, over half of Brits expect to face high levels of inflation until at least late-2023, including 23% who foresee steep price rises well into late-2024 and beyond. This means an overall cautious mindset is likely to dominate for the next couple of years. However, longer-term expectations provide opportunities to promote products and services that will help people do more than just ‘get through’ the cost of living crisis in the UK, and help them thrive despite the challenges. The “lipstick effect” is already in full effect across BPC and other broader categories as people hunt down affordable luxuries.
To discover more about the UK Consumers and the Cost of Living Market Report 2023, read our UK British Lifestyles Market Report 2022, or take a look at our other Financial Services Market Research.
This report, written by Rich Shepherd, a leading analyst in the finance sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
Decades-high inflation has prompted significant and wide-ranging changes in consumer behaviour. Savvy shopping and a focus on value has come squarely to the fore, and people are particularly interested in ways to reduce energy use. However, expectations that steep price rises will stick around for an extended period also provide opportunities for brands to innovate to offer consumers the means to thrive, not survive, throughout the cost of living crisis in the UK.”
Rich Shepherd
Category Director – Financial Services and Lifestyles
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
*databooks not available with UK B2B Industry reports.
Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.