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April 10, 2026
Contributing Writer, Bizrate Insights
Updated 4/10/2026
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When we surveyed consumers in December 2024 about their spending expectations for 2025, the economic landscape was already complicated. As our findings will show, inflation and potential tariff impacts were top of mind, with many indicating measured plans. At the time, future outlooks were mixed—some shoppers were carefully optimistic, while others braced for financial pressure. Consumer sentiment was painted with uncertainty.
It’s important to acknowledge that since then, consumer confidence has dropped fast. In February 2025, sentiment took a sharp plunge, marking the third month-over-month decline and biggest monthly dive since 2021.1 Economic uncertainty has only grown, and it’s likely that many consumers are taking a harder look at their spending plans.
That said, our findings still provide valuable insight into where consumers’ heads were just before this shift—offering a snapshot of their priorities, concerns, and expectations before confidence took a bigger hit. Even as conditions evolve, understanding the patterns that were already shaping consumer sentiment earlier on can help retailers, brands, and businesses make sense of what’s next.
Read on to see what was driving shoppers’ expectations heading into this year, and how these insights might still hold clues for the months ahead.
*Note this survey was conducted before the change in U.S. administration on January 20.
1“US Consumer Confidence Dropped Sharply in February,” The Conference Board’s Consumer Confidence Index.
Bizrate Insights surveyed a nationally representative sample of 514 U.S. consumers aged 18+ in December 2024 to explore spending expectations for 2025.
U.S. consumers—many of whom have been already feeling the brunt of financial pressures in 2024—don’t expect to let up on their wallets this year. A significant portion of respondents (41%) reported an increase in their spending in the past year due to inflation and other economic factors. Similarly, 40% expect their spending to increase in 2025.
Younger consumers, especially, forecast increased spending, with 50% of ages 30 to 39 and 57% of ages 18 to 29 saying so, compared to 27% of ages 55 to 64.
Rather than suggesting consumers are eager to spend more, this anticipated increase may simply highlight the financial adjustments necessary to sustain current living standards amid ongoing inflation.
Consumers are feeling somewhat confident when it comes to big purchases, but there’s still a sense of caution in the air. About 51% say they’re somewhat or very confident in making major financial commitments in 2025, and 47% feel optimistic about the U.S. economy.
However, varying responses by gender suggest differing levels of comfort with the current economic climate. Men tend to feel more assured, with 59% comfortable making big purchases, compared to 44% of women. A similar gap appears in economic optimism—59% of men feel positive about where things are headed, versus just 38% of women.
Inflation remains the number one overall concern for consumers in 2025. A full 65% cite rising prices as their top worry, followed by healthcare (44%), political instability (36%), and tariffs (28%).
Women are notably more concerned about healthcare (51% vs. 37% of men). Meanwhile, older consumers (age 55 and over) are significantly more concerned about political instability (51% vs. 29% of those under 55) and the impact of tariffs and trade policies (40% vs. 22% of younger consumers).
Not everyone’s in the same boat. The gap between consumers, how they view the economy, and their spending expectations is widening. Brands and retailers need to recognize these differences; a one-size-fits-all marketing approach won’t work. Understanding your audience and speaking to their specific needs will be key.
The looming impact of tariffs have consumers feeling unsettled about everyday affordability. Over three-quarters (76%) report moderate to extreme concern about price increases due to tariffs. Half are very or extremely worried.
Among product categories, consumers believe groceries (55%), electronics (53%), and vehicles (46%) will be hit the hardest.
Tariff-related price increases are putting brand loyalty on the chopping block, with 51% of consumers saying they’re likely to switch brands if their preferred brand raises prices from tariffs.
That said, factors like product quality (69%), discounts/promotions (40%), and loyalty programs (38%) can still influence brand retention in the face of these price hikes. If the sticker price is in question, retailers who can prove unmistakable value will be better equipped to keep their customers.
Double down on value. Highlight the quality and longevity of your products in your messaging, strengthen your loyalty program, and showcase what other special benefits and perks people stand to gain from shopping with your brand.
Overall, the factors that will keep people shopping with a given brand in 2025 are led, unsurprisingly, by competitive prices (64%), followed by loyalty rewards (44%) and customer support (34%).
Moreso than younger shoppers, older consumers are especially sensitive to prices (83% of ages over 55 vs. 49% of ages 18 to 39) and customer support (49% of ages 65+ vs. 29% of ages under 30). Meanwhile, over a quarter (26%) of shoppers under 40 are looking at brands’ sustainability practices, and 29% of ages under 55 are examining brand values compared to just 16% of ages over 65.
Customer experience is key. Factors like loyalty programs, customer service, return policies, and a personal connection to your company’s values all play a crucial role in building brand loyalty and mitigating the impact of price increases. Invest in enhancing your overall customer experience to foster stronger customer relationships.
Emphasize brand values and ethical practices. Consumers are increasingly examining whose values and business practices they resonate with, so communicate what your brand stands for in your messaging.
Over a quarter (29%) of consumers don’t plan on splurging at all in 2025. Fewer older consumers anticipate discretionary spending this year, with 44% of ages 55+ saying they won’t splurge on anything versus 22% of those under age 55.
Consumers who do expect to splurge say they’ll likely spend money on experiences like travel (32%) and dining (20%).
In times of economic uncertainty, the top three resources shoppers would appreciate from brands are price matching (54%), financial incentives like discounts or points (46%), and transparency around pricing (44%).
Over a third of younger shoppers (36% of shoppers under 40) say flexible payment options like “buy now, pay later” would be helpful during these times, compared to only 13% of ages 55 and over. Price matching and financial incentives gain importance with age, while community support initiatives and financial tips both drop drastically for ages 55 and over.
Meet price-sensitive shoppers where they are. Depending on your target demographic, a strategic range of pricing benefits, promotions, services, and transparent communications can go a long way in building trust and encouraging activity from careful shoppers.
Shopping habits vary based on how much something costs. For low-cost items, it’s all about price and convenience. Many hunt for deals (34%), and impulse buying is common (30%). When it comes to medium-cost purchases, scoring a deal still matters (32%), but a growing number of shoppers (29%) wait to buy only when necessary. For high-cost items, careful research is the name of the game (42%). Most people take their time comparing options and prioritizing quality and value over price alone. Brand trust also becomes even more important, as consumers want to feel fully confident in their investment.
Low-cost items: Encourage impulse buys through eye-catching displays, promotions, and convenient online shopping experiences. Consider bundling strategies to encourage multiple purchases.
Medium-cost items: Clearly emphasize value, durability, features, and the ability to meet specific needs in your messaging.
High-cost items: Take a comprehensive approach that includes detailed product information, highlighted customer reviews, and personalized consultations or support. Consider offering more flexible pricing models, including financing options or premium packages, to accommodate different customer needs and budgets.
With inflation and economic concerns shaping spending plans this year, retailers need to stay in tune with their price-sensitive shoppers. Build stronger customer connections and confidently navigate the evolving economic landscape using the following tactics.
Shoppers are watching their wallets, so highlight why your products are worth the price. Competitive pricing, honest communication about cost changes, and emphasizing product quality and longevity can make all the difference.
Analyzing shopping behaviors by price category to optimize your marketing efforts, stock the right products, and create pricing strategies that resonate with your audience.
Strategic discounts, promotions, and rewards programs are essential to keep budget-conscious shoppers coming back.
Offer tiered pricing or budget-friendly
alternatives to cater to a range of shoppers without alienating those looking for lower-cost options.
For a PDF download version of this report: Download Now
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