Consumer spending trends dominating 2025

The ongoing cost-of-living crisis continues to place consumer budgets under pressure, leading to long-term changes in spending behaviours.

Little treats replace big investmentsOne of the biggest trends to emerge from the cost-of-living crisis across Europe is the idea of indulging in little treats rather than splurging on big investments.

Consumers might not be able to afford a new car or a holiday abroad, but they can reward themselves with a slice of cake or a bar of chocolate as a treat.

“Perhaps signposting a lack of confidence in the economy, purchase intent for big ticket tech items has declined,” says a spokesperson for consumer platform Attest.

According to Attest’s Spending Trends Report, the number of people planning to buy a smartphone has dropped by 3% to 30% over the next 12 months. Similarly, those planning to buy a new TV is down 35 to 13%, and numbers planning to invest in a computer or tablet is down 4% to 17%.

Meanwhile, a survey from Barclays Bank finds that consumers are choosing to spend more on small items that “spark joy”, with rise in spending on these items climbing to 53% from 47% since August 2024. Sweet treats, such as cakes and pastries, were consistently picked as the most popular “pick-me-up” in his category.

Consumers are opting for little treats over big financial investments. (Paul Bradbury/Image: Getty/Paul Bradbury)Eat out and take out growsFollowing on from the ‘little treats’ trend, consumers are increasingly opting to order takeaways or eat out at restaurants, rather than going to the effort of cooking from scratch.

“Consumers are likely to spend a fair chunk of money on prepared food – whether that’s going out to eat or enjoying a takeaway at home,” says Attest.

Nearly 50% of respondents surveyed by Attest said they would eat out every month, while slightly fewer (47%) regularly opt for takeaways.

This also accounts for rise in popularity of meal kits, with revenue in the meal kit delivery market projected to reach $16.12bn (€14.19bn) by the end of 2025, with a continued CAGR of 6.39% over the next four years (Statista).

Digging further into the numbers, consumers aged 31-49 show a greater preference for getting a takeaway, while older generations are more likely to eat out at restaurants. Under 30s however are equally likely to do both.

Eating out in restaurants and ordering takeaways are growing in popularity. (Image: Getty/VioletaStoimenova)Consumer confidence variesWhen it comes to consumer confidence, opinions across Europe vary.

Despite concerns over the current financial situation in the UK, British consumers remain confident about the future of the economy, believing it’s headed in the right direction.

“When it comes to financial security in the UK, the scales are tipped in the right direction,” says Attest.

46% of consumers are said to be feeling financially secure, and a lesser 30.5% are said to be feeling financially insecure. Meanwhile, the percentage of consumers at either end of the scale – stating they feel ‘very’ secure or insecure – sits at 10%.

This increase in consumer confidence bodes well for the future strength of the economy as it will encourage spending in all categories going forward.

By contrast, consumer confidence in the Eurozone is in decline, with the Trading Economics consumer confidence indicator showing a fall to -16.7 this month, a decrease of 2.2 points from March, and below market expectations of -15. This marks the lowest level since November 2023.

Meanwhile, consumer morale across the European Union dropped by 2.1 points to -16.