European Consumers Prioritize Comfort and Indulgence Amid Economic Pressures
Amid economic and global challenges, European consumers are increasingly investing in products that offer comfort and emotional satisfaction, according to a new report by Circana.
The latest findings from Circana, detailed in their "Eat Play Love" report, indicate a significant shift in consumer behavior across Europe. Despite a general trend of frugality in everyday spending, purchases have markedly increased, providing emotional relief and personal indulgence. This trend encompasses various sectors, including food, toys, and beauty products.
In the food sector, the concept of 'snackification' is evolving, with 13% of Europeans opting for snacks instead of traditional meals, and spending in this category has risen by 4.5% in foodservice outlets. Additionally, taking leftovers home from restaurants is becoming more popular, driven by economic and environmental considerations.
The report also highlights a surge in demand for high-quality dining experiences at home. Consumers are blending delivery services with home-prepared elements to create restaurant-quality meals at a fraction of the cost. This segment saw a spending increase to €29 billion in 2024, up from €26 billion the previous year.
In the toy industry, there is a growing preference for toys that offer stress relief and emotional engagement for adults and children. Sales of toys for individuals aged 12 and older have doubled over the past decade, now accounting for 31% of all toy sales in Europe, totaling €4.6 billion. The report predicts that this trend will continue, with these toys potentially comprising nearly 40% of the market by 2034.
The beauty sector is witnessing a similar trend, with consumers gravitating towards products that enhance appearance and provide emotional benefits. Sales of high-end fragrances saw a 32% increase in 2024, reaching €653 million. Additionally, there is a noticeable shift towards beauty products that incorporate food-inspired elements, which resonate with consumers on a sensory and nostalgic level.
Circana's report is based on comprehensive data covering hundreds of categories and billions of SKUs across five major European countries, including the UK, France, Italy, Spain, and Germany. This extensive coverage provides detailed insight into European consumers' evolving preferences and spending habits.
The "Eat Play Love" report underscores a broader trend where European consumers seek greater control over their spending, focusing on products and experiences that offer genuine value and emotional satisfaction. This shift indicates a deeper reassessment of personal priorities and lifestyle choices amid ongoing economic pressures and global uncertainties.
