The latest insights from a McKinsey report, as discussed on Parcel Monitor, shed light on the changing sentiment and behavior trends of European consumers in a market affected by geopolitical tensions, inflationary pressures, and macroeconomic challenges. Key findings include:
● Economic Cautiousness: More than 50% of European consumers are cautious about the economy, driven by concerns over inflation. Despite optimism due to a strong labor market and potential declines in inflation, there's a prevalent wait-and-see attitude towards economic recovery.
● Adjusting to Price Increases: Consumers across income levels are adopting money-saving strategies in response to rising prices, such as opting for cheaper goods or discount retailers. Italian and Spanish consumers, in particular, have reduced their overall purchases. A notable 69% of Europeans intend to cut back on non-essential spending, with a shift towards private labels and discount stores.
● ESG Influence: There's an increasing consumer demand for products from companies that are committed to Environmental, Social, and Governance (ESG) principles. Around 70% of European consumers are willing to pay more for sustainable products, emphasizing the importance of transparency and sustainability in building brand trust.