A new study of 2,000 respondents revealed that despite the cost-of-living crisis, UK consumers still maintain strong spending power, as 38% of Brits reported spending more of their disposable income now than in the past year.
Bauer Media Outdoor’s recent Audiences in Focus report also indicated growth in consumer confidence, with 36% of Brits reporting having less rigid budgets and treating themselves more, compared to the same period last year (20% YoY increase).
Focusing on consumer spending power, the report revealed that grocery shopping (69%) topped the list of the main categories people spend most of their money on. Travel (31%), eating out (29%), quality time with family (26%), and clothes shopping (18%) round out the top five of the top biggest category spends.
Travel topped the list of disposable income spending for Brits, with 1 in 3 (33%) splashing out on it. Clothes (26%), home improvements (25%), entertainment (23%), and hobbies (20%) round out the top five sources of disposable income spending.
The research data shows a clear divide in how each age group uses their disposable income. Gen Z spends their disposable income on snacks (32%) and entertainment (26%), while Millennials prioritise clothes (37%) and travel (30%). Those aged 35 and over spend most of their disposable income on travel, and this preference increases with age.
Motivations behind spending disposable income include serving as a mood boost (32%), seeking new experiences (31%), for self-improvement (23%), and in pursuit of social connection (19%).
When it comes to generational differences, 18-24-year-olds (32%), 45-54-year-olds (41%), and 55-65-year-olds (34%) prioritise the mood-boosting abilities of spending. An impressive 45% of 25-34-year-olds spend their money in the name of self-improvement. For 35-44-year-olds (38%) and those 65 and over (21%), new experiences are the main reason for supplementary spending.
Other key findings from the study:
Nearly 1 in 5 (19%) people spend their disposable income on their partner
1 in 3 (29%) Brits spend their disposable income on themselves, while a similar percentage spend their extra cash on their kids (28%).
The higher a person’s income, the more likely they are to spend their disposable income on their kids.
1 in 3 (32%) of Gen Z cite social connection as one of the reasons for spending their disposable income. Interestingly, this reason loses popularity with age.
1 in 20 (5%) Millennials go out every day, making them more socially active than Gen Z, of whom only 2% do the same.
The younger generations are more likely to spend money on socialising than their older counterparts, with 18-24-year-olds (21%) and 24-44-year-olds (18%) investing more in their social lives than 45-64-year-olds (16%) and those aged 65 and over (15%).
Nearly 1 in 5 (19%) Gen Z spend their money on watching films.
Nearly 1 in 10 (9%) of the younger members of Gen Z spend their income on dating.
