How the C-Suite can understand UK consumers in 2024

UK consumers have found themselves grappling with an array of formidable challenges that have reshaped the landscape of daily life. The spectre of inflation, reaching unprecedented levels, cast a pervasive shadow over households, triggering a profound shift in spending habits.

In this guide, we use a conceptual behavioural economic framework encompassing four key dimensions — Passions, Worries, Money, and Time — to evaluate how these changes will affect consumer behaviour at a societal level in 2024. These pillars serve as a strategic lens, allowing businesses and brands to delve deeper into the nuanced fabric of societal dynamics.

Passions

In the backdrop of rising inflation and a cost of living crisis in the UK, the way people derive enjoyment has undergone notable shifts. The financial constraints imposed by escalating prices have compelled many to reevaluate their spending habits. Travel plans have also been curtailed, as higher costs for fuel, transportation, and accommodations, coupled with pandemic-related uncertainties, to opt for fewer holidays. Similarly, shopping behaviours have adjusted to prioritizing essential needs, with consumers intending to seek the best deals and purchasing fewer non-essential items.

Despite these financial challenges, a parallel narrative emerges where people in the UK have discovered novel and creative avenues for enjoyment. Hobbies have taken on heightened significance, becoming a popular means of entertainment and personal growth. There has been a growing in interest in activities like drawing, reading, DIY projects, and gardening. Simultaneously, the prevalence of streaming services such as Netflix, Spotify, and YouTube has skyrocketed, offering a diverse array of personalised content. This multifaceted response underscores the resilience and adaptability of the UK population, showcasing how, even in the face of economic challenges, individuals are finding joy and purpose through innovative and fulfilling pursuits.

Worries

The cost of living crisis in the UK continues to be a major concern for 2024, with inflationary pressures affecting essential commodities such as food, fuel, energy, and housing. The housing crisis and rising mortgage costs are also contributing to this economic strain. In 2023, more than 1.4 million households in the UK were facing the prospect of interest rate rises when they renew their fixed-rate mortgages in 2023. The majority of fixed-rate mortgages in the UK (57%) coming up for renewal in 2023 were fixed at interest rates below 2%. The number of people priced out of a decent standard of living is expected to reach 30 million by 2024, according to a study by the New Economics Foundation.

The state of the NHS remains a significant worry, grappling with the aftermath of the COVID-19 pandemic, staffing shortages, and rising demand for healthcare services. The NHS waiting list is expected to reach 8 million in 2024, threatening the view that the service is freely available for all as a bedrock of the UK economy. The strain on the healthcare system is indicative of broader concerns about the resilience and capacity of public services in the face of ongoing challenges.

Time

Time, a precious and scarce resource, continues to be a central consideration for the people of the UK in 2024. The pandemic has reshaped the way individuals utilise their time, with a growing emphasis on flexibility, autonomy, and balance in personal and professional lives. The insights from the Office for National Statistics shed light on changing social trends, including shifts in leisure activities, internet usage, and overall life satisfaction.

As the desire for a balanced lifestyle persists, the societal conversation around time management is expected to influence workplace dynamics, commuting patterns, and community engagement. These changes may contribute to a reevaluation of societal values and priorities.

Money

In 2024, money remains a critical factor shaping choices and opportunities for individuals in the UK. The financial landscape, reflects a diverse set of considerations. For the majority of consumers, the search for effective savings strategies is a priority. This has placed online sites such as Which?, as well as TV shows such as the ‘Martin Lewis Money Show’ front and centre in societal thinking.

The role of cash in society, examined by the Bank of England, reveals a nuanced perspective on the evolving nature of transactions. Despite digital advancements, the convenience, security, and inclusivity of cash continue to be valued. This dual reliance on both traditional and modern financial tools highlights the dynamic nature of the financial ecosystem in the UK.

Macro to Micro-economics

In conclusion, the cracks in UK society are likely to continue in 2024, along with continued political turmoil. Yet, with societal disparity increasing, the impacts of the issues presented in the piece are unlikely to be faced by all. This, in itself, is changing the dynamics of how marketers decide on a target market and understand the unique buyer psychology with that specific group.

This piece is therefore simply a guide of the underlying issues in society that everyone will be aware of, even if not specifically impacted by. If you are a marketer and like to know more about how to develop this framework with much more detailed modelling and metrics for your brand, please get in touch. We’d love to hear from you.