Consumer card spending increased 1.6 %year-on-year in 2024 – noticeably lower than 2023’s 4.1% growth – as Brits limited food & drink and ‘big ticket’ purchases, and prioritised spending on affordable treats and experiences that bring them joy.
New data from Barclays reveals that essential spending grew just 0.9% in 2024, down from 3.9% last year, as spending on fuel fell while supermarket growth slowed. Non-essential spending increased 1.9%, as consumers’ strong appetite for ‘little luxuries’ boosted health and beauty, entertainment and digital content, but still lagged behind 2023 levels (4.2%).
The Barclays Consumer Spend report, which combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending, reveals the top 10 trends that shaped consumer behaviour this year.
- It was an entertainment spendanova for experience-loving Brits
Brits prioritised spending on memorable experiences in 2024, with the entertainment sector enjoying a 5.8% uplift. Those who spent on entertainment in 2024 each spent £343 on average.
Spending on live shows and concerts increased 6.7 % thanks to ticket sales and attendance at major musical events such as The Eras Tour, Sabrina Carpenter, Coldplay World Tour, and Oasis’s reunion. Growth in spending on entertainment reached a 2024-high in September, up 14.4%, when Oasis fans rushed to buy tickets for the much-anticipated tour. This was the highest growth seen since July 2023 (15.8%) when Eras Tour tickets went on sale.
Beyond live entertainment, blockbuster hits such as Wicked, Wonka, Gladiator II, Paddington in Peru, Deadpool vs Wolverine and Inside Out 2 drew Brits to the silver screen in the latter half of the year; cinemas enjoyed a 22.8% boost in November.
- Treatonomics and the ‘lipstick effect’
Cutbacks continued for countless consumers, but many adopted a “treat yourself” attitude in 2024. Nearly half (46%) of Brits say they prioritise spending on small, affordable, mood-boosting luxuries such as pastries and cosmetics, even while tightening budgets.
Among this group, baked goods were a particularly popular ‘pick-me-up’, chosen by 43 % at an average monthly spend of £22 each, with crookies and pistachio desserts among the year’s top trending treats.
Demand for little luxuries also boosted pharmacy, health and beauty retailers, up 7.1%, further demonstrating the impact of the ‘lipstick effect’, where shoppers prioritise cosmetics purchases, even when limited spending. ‘Beauty spenders’ splashed out £291 each on average in 2024.
- Double-dip shrinkflation
Shrinkflation emerged as one of supermarket shoppers’ top scourges in 2023, while this year saw ‘double-dip’ shrinkflation bite. Two thirds (64%) of cost-conscious Brits noticed ‘double-dip’ shrinkflation in 2024, where products go through two or more rounds of size reductions without a corresponding drop in price.
According to this group, the five most cited products hit by ‘double-dip shrinkflation’ were chocolate (54%), crisps (39%), packs of biscuits (34%), snack bars (32%) and sweets (32%).
- Brits find creative ways to save
Consumer confidence in household finances showed tentative signs of recovery this year, reaching an average of 69%, up from 64% on average in 2023. Brits took control over their finances and embraced new ways to save; almost a quarter (23%) say they have participated in or would consider participating in a “no-spend” challenge, which involves refraining from making non-essential purchases, such as takeaways, coffees and clothes.
Almost half (45%) said they were cooking more at home to save money, while setting clearly defined spending goals (such as saving for a holiday or building an emergency fund) and planning expenses in advance (37% and 36% respectively) also proved to be popular.
- Television thrives
Demand for digital content soared in 2024, emerging as the year’s strongest performing category, up 13.2% – nearly twice the 7.3% increase seen in 2023. Brits swapped nights out for nights on the couch, helped by the return of Bridgerton, House of the Dragon, and The Lord of the Rings: The Rings of Power and newer offerings such as Supacell, Agatha All Along and Baby Reindeer.
“Streamflation”, the rising price of streaming subscriptions, also took effect; 59 % of Brits expressed concern about their digital subscriptions becoming more costly. Despite this, only 27% of those cutting down their discretionary spending said that they would reduce their spending on the category.
- Brits continue to pull up a bar stool
Brits continued to flock to bars, pubs and clubs in 2024, as the sector recorded a modest 3.6% year-on-year increase, fuelled by a summer of sport and a desire for festive socialising, with Brits that ventured to the pub spending £344 on average each throughout 2024. Growth at pubs outperformed restaurants in 2024, which were up just 1.7% in comparison, suggesting Brits opted for more casual, relaxed socialising in the last year.
- Grocery Slowdown
Growth in supermarket spending slowed to 1.3%, down from 6.5% in 2023. In a year of determined budgeting, cost-conscious shoppers continued to look out for loyalty scheme discounts and supermarket deals. Encouragingly, Barclays Consumer Confidence data found over a third (36%) of shoppers have noticed food prices rising at a slower rate in recent months.
- Easing pressure on household finances
There was welcome relief for households as concerns about inflation and the cost of energy bills both began to ease at the midway point of the year. Spending on fuel declined -7.0% while spending on essential categories overall grew by just 0.9 %. This led to Brits’ confidence in their household finances reaching 71% in April, the highest level since November 2021 (72%).
- Brits take to the skies
Travel sector spending stayed strong in 2024, up 6.9%, but lagged behind 2023, when growth reached 15.2%. Holidaymakers spent £1,117 on average each on travel, and travel agents (7.9%) and airlines (7.5%) both saw significant uplifts in the period.
The strong demand for travel was also highlighted by holidays ranking #1 in a list of discretionary spending priorities, chosen by 22 % of respondents. Three in 10 consumers (28%) have already booked a getaway for 2025, with almost a quarter (23%) of these holidaymakers booking early to save money, and one in three (31%) choosing to visit a new destination they’ve not been to before.
One in five Brits say they adopt a ‘treat yourself’ mindset when travelling, while 37% say that when they go on holiday, they tend to spend more than they had planned to.
- Homeowners choose sustainability over style
Spending on home improvements & DIY dropped -7.3% year-on-year, while furniture stores also recorded a -2.2% fall, indicating that Brits have been making fewer home décor purchases, instead favouring experience-led categories.
Whilst energy bills remained below 2023 levels, the energy price cap rise and colder weather kept home heating on the agenda. A quarter of homeowners (25%) reported making energy efficiency improvements to their home in 2024. Of those making changes, over half (52%) are seeking to reduce long-term energy use and a fifth (1%) hope to increase the value of their property.
Karen Johnson, head of retail at Barclays, said, “2024 demonstrated Brits’ strong appetite for experiences very clearly, spending selectively elsewhere in order to find room in their budgets for the moments and treats that the most matter to them.
“From The Eras Tour to the much-anticipated Oasis reunion; blockbusters at the cinema to quality content on the couch; pastries to lipsticks and planning trips abroad, Brits collectively said ‘yes’ to joy in their spending, even against a backdrop of rising bills and living costs.
“This conscious consumerism will continue to shape spending in the new year, with entertainment likely to maintain its momentum, as Brits continue to embrace their ‘new essentials’.”
