Barclays has revealed the 2024’s top 10 consumer spending trends. Consumer card spending has increased 1.6% year-on-year in 2024 – lower than 2023’s 4.1% growth – as Brits limited food & drink and ‘big ticket’ purchases, and prioritised spending on affordable treats and experiences that bring them joy.

The top 10 trends that shaped consumer behaviour in 2024:

Entertainment and experiences sector 

• Brits prioritised spending on memorable experiences in 2024, with the entertainment sector seeing a 5.8% uplift. Those who spent on entertainment in 2024 each spent £343 on average.

Treatonomics and the ‘lipstick effect’

• Nearly half (46%) of Brits say they prioritise spending on small, affordable, mood-boosting luxuries such as pastries and cosmetics, even while tightening budgets.
• Among this group, baked goods were a particularly popular ‘pick-me-up’, chosen by 43% at an average monthly spend of £22 each.
• Demand for little luxuries also boosted pharmacy, health and beauty retailers, up 7.1%, further demonstrating the impact of the ‘lipstick effect’, where shoppers prioritise cosmetics purchases, even when limited spending. ‘Beauty spenders’ splashed out £291 each on average in 2024. ​

Double-dip shrinkflation

• Shrinkflation emerged as one of supermarket shoppers’ top scourges in 2023, while this year saw ‘double-dip’ shrinkflation bite.
• Two-thirds (64%) of cost-conscious Brits noticed ‘double-dip’ shrinkflation in 2024, where products go through two or more rounds of size reductions without a corresponding drop in price.

Brits find creative ways to save

• Almost a quarter (23%) of Brits say they have participated in or would consider participating in a “no-spend” challenge, which involves refraining from making non-essential purchases, such as takeaways, coffees and clothes.
• Almost half (45%) said they were cooking more at home to save money while setting clearly defined spending goals and planning expenses in advance (37% and 36% respectively) also proved to be popular.

Television thrives

• Demand for digital content soared in 2024, emerging as the year’s strongest performing category, up 13.2% – nearly twice the 7.3% increase seen in 2023.
• “Streamflation”, the rising price of streaming subscriptions, also took effect; 59% of Brits expressed concern about their digital subscriptions becoming more costly.
• Despite this, only 27% of those cutting down their discretionary spending said that they would reduce their spending on the category.

Pubs, bars, clubs and restaurants sector

• The bars, pubs and clubs sector recorded a modest 3.6% year-on-year increase, with Brits that ventured to the pub spending £344 on average each throughout 2024.
• Growth at pubs outperformed restaurants in 2024, which were up just 1.7% in comparison, suggesting Brits opted for more casual, relaxed socialising in the last year.

Grocery slowdown

• Growth in supermarket spending slowed to 1.3%, down from 6.5% in 2023. 

Easing pressure on household finances

• Spending on fuel declined -7.0%, while spending on essential categories overall grew by just 0.9%.

Travel sector

• Travel sector spending stayed strong in 2024, up 6.9%, but lagged behind 2023, when growth reached 15.2%.
• Holidaymakers spent £1,117 on average each on travel, and travel agents (7.9%) and airlines (7.5%) both saw significant uplifts in the period.
• The strong demand for travel was also highlighted by holidays ranking #1 in a list of discretionary spending priorities, chosen by 22% of respondents.
• Three in 10 consumers (28%) have already booked a getaway for 2025.

Homeowners choose sustainability over style

• Spending on home improvements & DIY dropped -7.3% year-on-year, while furniture stores also recorded a -2.2 % fall.

For the full report, visit barclays.com.