A study of 2,000 respondents revealed that despite the cost-of-living crisis, UK consumers still maintain strong spending power.
A study of 2,000 respondents revealed that despite the cost-of-living crisis, UK consumers still maintain strong spending power, as 38% of Brits reported spending more of their disposable income now than in the past year.
Bauer Media Outdoor’s recent Audiences in Focus report also indicated growth in consumer confidence, with 36% of Brits reporting having less rigid budgets and treating themselves more, compared to the same period last year (20% YoY increase).
Focusing on consumer spending power, the report revealed that travel topped the list of disposable income spending for Brits, with 1 in 3 (33%) splashing out on it. Clothes (26%), home improvements (25%), entertainment (23%), and hobbies (20%) round out the top five sources of disposable income spending.
The research data shows a clear divide in how each age group uses their disposable income. Gen Z spends their disposable income on snacks (32%) and entertainment (26%), while Millennials prioritise clothes (37%) and travel (30%). Those aged 35 and over spend most of their disposable income on travel, and this preference increases with age.
Motivations behind spending disposable income include serving as a mood boost (32%), seeking new experiences (31%), for self-improvement (23%), and in pursuit of social connection (19%).
When it comes to generational differences, 18-24-year-olds (32%), 45-54-year-olds (41%), and 55-65-year-olds (34%) prioritise the mood-boosting abilities of spending. An impressive 45% of 25-34-year-olds spend their money in the name of self-improvement. For 35-44-year-olds (38%) and those 65 and over (21%), new experiences are the main reason for supplementary spending.
London came third in the top 10 cities and towns with the greatest increase in disposable income spending over the past year.
Other key findings from the study:
- Nearly 1 in 5 (19%) people spend their disposable income on their partner
- 1 in 3 (29%) Brits spend their disposable income on themselves, while a similar percentage spend their extra cash on their kids (28%).
- The higher a person’s income, the more likely they are to spend their disposable income on their kids.
- 1 in 3 (32%) of Gen Z cite social connection as one of the reasons for spending their disposable income. Interestingly, this reason loses popularity with age.
- Grocery shopping (69%), travel (31%), eating out (29%), quality time with family (26%), and clothes shopping (18%) are the main categories people spend most of their money on.
- 1 in 20 (5%) Millennials go out every day, making them more socially active than Gen Z, of whom only 2% do the same.
- The younger generations are more likely to spend money on socialising than their older counterparts, with 18-24-year-olds (21%) and 24-44-year-olds (18%) investing more in their social lives than 45-64-year-olds (16%) and those aged 65 and over (15%).
- Nearly 1 in 5 (19%) Gen Z spend their money on watching films.
- Nearly 1 in 10 (9%) of the younger members of Gen Z spend their income on dating.
This research was carried out by Bauer Media Outdoor.
