European shoppers are scaling back on spending, even as inflation eases, according to Boston Consulting Group’s (BCG) 2024 European Consumer Sentiment Report. In the first half of 2024, 73% of consumers reported higher prices, but wages and savings haven’t kept up. Around 25% said their income decreased, and 28% saved less.
This has led to reduced spending on non-essential items, with apparel (-20%), snacks (-15%), and alcohol (-15%) seeing the largest declines. However, spending on luxury fashion dropped less sharply. The report identifies two consumer segments: a price-sensitive group that cut spending by 35%, and a more resilient group that increased spending by 22%, opting for higher-quality or premium brands.
Despite tightening budgets, European consumers feel better about their personal situations, such as financial stability and health, than about broader national issues.
National political and economic concerns remain top of mind for many. Namely, 57% of respondents expressed worries about their country’s political situation and 49% about the economy. In contrast, only 25% felt pessimistic about their personal financial security. Nordic residents were more optimistic than the average European, while French respondents were the most concerned about their country’s political climate.
Sustainability is a consideration for nearly 40% of European shoppers, but only 19% are willing to pay extra for eco-friendly products. Factors like value for money, convenience, and discounts remain more important.
While many European consumers browse online for inspiration, brick-and-mortar stores still dominate as the preferred shopping method. Shoppers in France and Germany are particularly hesitant to buy online, especially in categories like groceries and home care.