European consumers are moderating their purchases in the face of an uncertain economic context, according to the latest study by McKinsey & Company, ‘Consumer confidence and sentiment in Europe’.
55% of European consumers prefer to be cautious in the current economic context marked by geopolitical tensions and inflation. Although consumer optimism has increased in the second quarter of 2024, thanks to the regularisation of inflation, most consumers are still uncertain about possible changes and increases in product prices.
The survey was conducted among citizens in Spain, Germany, Italy, France and the UK and consumers say they prefer to spend selectively, prioritising value in their purchases, something that also carries over into the cosmetics sector, when they ponder a decision before buying a cosmetic product.
The report points out that 63% of consumers in Europe expect not to spend in an exaggerated way, while 37% have expressed their intention to do so in the next three months, especially this behaviour and habit is found among the youngest. In the same document, McKinsey & Company points out that consumers now prefer to spend their budget on travel and entertainment.
Sustainability continues to be a key purchasing driver
The McKinsey report highlights that consumers in Europe consider sustainability and environmental practices to be key factors in their purchasing behaviour, making them increasingly conscious and environmentally responsible and sustainable. Particularly in our sector and personal care, sustainability is a determining factor in purchasing.
European consumers, especially younger consumers, value the transparency of companies in communicating what is in their products, and this trend is even more pronounced in Italy and the UK, where young people demonstrate a high level of awareness.