As we end 100 days of January, consumers are navigating a landscape that feels paradoxical: selectively cautious yet digitally adventurous, wallet-aware yet values-oriented, and stressed about the economy yet curious about new ways to live and shop.
Across markets from the UK to the US and broader global indicators, five core themes dominate consumer behaviour, each supported by fresh data and surveys.
1) Cautious spending and economic anxiety
Consumers are behaving as though a downturn is already upon them, tightening belts, deferring big purchases, and sharpening price sensitivity.
With 56% of consumers were already spending as if in a recession, according to a Gartner survey from November 2025. And 58% of Gen Z and 63% of Millennials are already adjusting their spending habits accordingly.
If this is your target audience, you need to be mindful that your "nice to have" product, service or proposition will probably fall flat if you can't effectively communicate its value to the end user.
Consumer confidence had slipped to its lowest level in two years, with a third (32%) cutting luxuries and 39% being frugal, according to Deloitte’s UK Consumer Tracker.
And KPMG UK’s latest Consumer Pulse agrees, as it found 49% of people cutting discretionary spend and 36% are saving more, with nearly half planning no big-ticket buys in early 2026.
Reflecting a climate of financial uncertainty and fragility. Marketing as a luxury item for the sake of luxury will fail - we're seeing this on social media as there is increasing disdain towards creators and celebrities who boastfully display their wealth in the face of growing wealth gaps, increased rates of poverty, unsustainable cost of living increases and wage stagnation.
Since the Eurozone are expecting long-term inflation to hit record highs in late January 2026, with five-year forecasts at 2.4%, suggesting persistent price pressure in daily life, this consumer frugality trend will intensify.
So consumers are hyper-discriminating, prioritising essentials, trimming luxuries, and behaving defensively in expectation of economic uncertainty.
2) Value-driven and intentional buying
Beyond frugality, the definition of value is shifting. Value now means purposeful and beneficial, not merely cheap.
Nearly half of UK consumers say they'll spend the same or less on discretionary items in 2026 versus 2025, with only 13% planning more discretionary spend.
Global analyses highlight a broad shift toward value-seeking behaviour, including increased use of Buy-Now-Pay-Later (BNPL) for essentials and growth in no-frills, budget products.
Independent trend insights show approximately 60% of consumers feel more price-conscious than a year ago, yet more than 40% are still spending more on wellness or personal care, showing selective prioritisation.
Smart brands are moving from discounting to value signalling, communicating quality, durability, and everyday utility over pure price wars.
Unless you're a brand whose MO is fitness, nutrition, wellness and sleep, which we see in the uptick in biohacking content across social media.
3) Emotional wellbeing, comfort, and identity matter
Consumers are balancing economic caution with intentional indulgence. Spending where it brings emotional comfort, identity affirmation, or wellness gains.
Capgemini reports 71% of consumers still choose treats and small indulgences to cope with financial stress, even while seeking deals.
Sector trends show furniture and garden centre categories growing as they're interpreted as investments in home comfort sanctuaries.
Wellness and self-care categories continue to outperform general discretionary categories as consumers focus on personal quality-of-life improvements.
Deliberate comfort and identity-aligned purchases are emotional armour for consumers: strategic, selective splurges that feel good and worth it.
4) Digital first, seamless everywhere
This is the reason Red Clay Media exists, and our USP. We didn't massage the figures to get this in; we've got receipts.
Digitisation isn’t a trend. It’s the foundation of modern consumption. Whether in physical stores or browsers, digital tools shape discovery and purchase.
Digital behaviours are gaining ground. UK consumers report increasing use of digitised price search and AI tools to compare and save.
So consumers are expecting a seamless blend across digital platforms and in-store experiences (if relevant).
And they're valuing ease, as a EuroMonitor report stated 58% report moderate to extreme daily stress, so they prioritise comfort-oriented choices and products that simplify and reassure. We've been saying this for years!
Put spend behind improving your online customer journeys, making sure your website adds value, creating content that helps their decision-making and decreasing cognitive load. See our video on "UX should make people happy".
Global commerce insights show rising use of AI personalisation and search tools, and social commerce for product discovery.
Meaning consumers are monitoring prices, strategically looking for specific items rather than settling for whatever they find, and side-stepping subscription traps.
Platforms like TikTok Shop are exploding in influence (the US market has been growing to around 52% Year on Year), with creator-led commerce reshaping buying funnels, especially among younger demographics, like Gen Z and Millennials.
So polish those CTAs and that supply chain.
Speed, personalisation, and integration across devices and channels aren’t luxuries; they're baseline expectations for shoppers in 2026.
5) Value and ethics: Sustainability, AI transparency and trust
Consumers are not only economic actors, they're also ethical actors. Values matter, especially around sustainability and technology.
A significant share of consumers want clear rules for AI use in shopping, with concerns about data transparency and control.
Circular economy behaviours are rising, with younger consumers more likely to buy second-hand goods than in previous years.
Reports show up to 71% of consumers consider environmental impact when buying.
Consumers increasingly vote with their wallets for companies that demonstrate ethical clarity, sustainability, and trustworthy tech use.
Summary: A consumer landscape defined by intention
The collective picture as we enter February 2026 is not simple pessimism, it’s nuanced pragmatism:
📉 Economic caution and anxiety shape spending habits.
🧠 Value prioritisation replaces indiscriminate buying.
❤️ Comfort and meaning coexist with belt-tightening.
📱 Digital experiences are expected everywhere.
🌍 Ethics and trust matter as deeply as price.
Consumers are not retreating from the market, they're reshaping it with thoughtful, data-informed choices.
