Consumer spending worldwide will increase by 5.5% in 2025, according to a new report by NielsenIQ.
This growth stems from declining inflation, anticipated economic recovery, and rising consumer confidence.The study, titled Mid-Year Consumer Outlook: Guide to 2025, projects an additional $3.2 trillion in consumer spending compared to 2024 forecasts.
This uptick aligns with expectations of lower inflation rates in the coming year.Most countries have seen a downward trend in monthly inflation rates for consumer goods.
Year-over-year growth has dipped below 2 percent in many regions, signaling economic stabilization.New consumers will drive approximately 32% of the spending growth in 2025, mirroring figures from 2024.
Increased purchasing power among existing consumers will likely fuel the remaining expansion.NielsenIQ experts describe these growth expectations as modest and stable when compared to consumer behavior in 2024.
The market research firm notes a shift in consumer habits over the past six months.Global Consumer Spending Set to Rise in 2025: NielsenIQ Forecast.
(Photo Internet reproduction)Insights from NielsenIQLauren Fernandes, VP of Global Thought Leadership at NIQ, observed a change from cautious to intentional spending.
Consumers show a willingness to spend more while remaining aware of potential economic fluctuations.Essential goods like housing, food, and transportation will benefit most from this spending increase.
These categories are expected to account for 49% of total spending growth in 2025.Discretionary categories such as travel and dining out will also see increased consumer spending.
This trend suggests growing consumer confidence in non-essential purchases.The report highlights a balanced approach to spending, with consumers maintaining awareness of economic conditions.
This cautious optimism reflects a gradual return to pre-pandemic spending patterns.NielsenIQs forecast provides valuable insights for businesses planning their 2025 strategies.
Companies may need to adapt their offerings to meet evolving consumer preferences and spending habits.As global economies continue to recover, this projected increase in consumer spending could signal broader economic growth.
However, businesses and consumers alike will likely remain vigilant to potential market changes.