On small devices, please use the menu in portrait orientation.

Exclusive Research

Consumer
Sentiment Survey

Spring 2024

The optimistic outlook on consumer resilience observed in Spring ‘23 gradually waned during the fall and has continued to fade this spring. American consumers are adopting a more cautious approach, prioritizing savings and actively seeking bargains & discounts to reduce overall expenses. However, while this cautious approach largely affects regular spending habits, experiences such as vacations remain a priority for consumers this season.

Read Full Report

Changes in Consumer Expectations

Consumer sentiment has consistently declined across past cycles, signaling a prevalent sense of pessimism regarding improvements in current financial circumstances - consumers anticipate earning, spending, and saving less money.

Fall ‘22

100%
80%
60%
40%
20%
0%
48%
58%
61%
48%
51%
46%
45%
46%
54%
43%
46%
71%
46%
53%
55%
45%
49%
43%
88%
89%
88%
87%
90%
90%
x
White
40%
LatinX
60%
Black
63%
Asian
46%
White
55%
LatinX
69%
Black
71%
Asian
48%
White
61%
LatinX
67%
Black
61%
Asian
45%
White
41%
LatinX
60%
Black
63%
Asian
32%
White
42%
LatinX
63%
Black
69%
Asian
39%
White
39%
LatinX
59%
Black
59%
Asian
51%
x
White
36%
LatinX
58%
Black
65%
Asian
49%
White
39%
LatinX
65%
Black
64%
Asian
49%
White
53%
LatinX
60%
Black
59%
Asian
43%
White
36%
LatinX
56%
Black
60%
Asian
41%
White
38%
LatinX
59%
Black
66%
Asian
49%
White
65%
LatinX
85%
Black
81%
Asian
77%
x
White
37%
LatinX
54%
Black
66%
Asian
50%
White
50%
LatinX
60%
Black
66%
Asian
43%
White
54%
LatinX
61%
Black
57%
Asian
45%
White
37%
LatinX
56%
Black
65%
Asian
34%
White
39%
LatinX
66%
Black
68%
Asian
49%
White
34%
LatinX
55%
Black
65%
Asian
46%
x
White
88%
LatinX
91%
Black
87%
Asian
84%
White
88%
LatinX
88%
Black
88%
Asian
93%
White
89%
LatinX
90%
Black
83%
Asian
91%
White
88%
LatinX
86%
Black
84%
Asian
86%
White
89%
LatinX
94%
Black
90%
Asian
89%
White
91%
LatinX
89%
Black
86%
Asian
91%

Expect things to get better for their family

Plan to save more

Expect to have more money for self & family

Plan to spend the same or more money on Basic Needs

Spending Plans By
Type Of Category

This downward trajectory encompasses all types of spending, with the most substantial drop observed in gift purchases and the least significant decrease seen in spending on experiences. The urge to spend on gifts has hit an unprecedented low over the past two years.

  • Spring ‘22

  • Fall ‘22

  • Spring ‘23

  • Fall ‘23

  • Spring ‘24

View Spring ‘22 Demographic Champions View Fall ‘22 Demographic Champions View Spring ‘23 Demographic Champions View Fall ‘23 Demographic Champions View Spring ‘24 Demographic Champions

  • Spring ‘22

  • Fall ‘22

  • Spring ‘23

  • Fall ‘23

  • Spring ‘24

% Net More (More - Less)

DEMOGRAPHIC CHAMPIONS- Most likely to spend more in each category

Basic Needs: 18%

  • Age: 

    18-22

  • Household Income: 

    $150K+

  • Ethnicity: 

    Non-White

  • Gender: 

    Male

Experiences: -3%

  • Age: 

    23-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Hispanic

  • Gender: 

    Male

Gifts: -1%

  • Age: 

    18-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Asian

  • Gender: 

    Male

Indulgences: -9%

  • Age: 

    18-22

  • Household Income: 

    $150K+

  • Ethnicity: 

    Non-White

  • Gender: 

    Male

Basic Needs: 26%

  • Age: 

    18-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Non-Asian

  • Gender: 

    Male

Experiences: 9%

  • Age: 

    23-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Hispanic/Black

  • Gender: 

    N/A

Gifts: -5%

  • Age: 

    18-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Black

  • Gender: 

    Male

Indulgences: -12%

  • Age: 

    23-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Black

  • Gender: 

    Male

Basic Needs: 21%

  • Age: 

    18-35

  • Household Income: 

    $75-99K

  • Ethnicity: 

    Black

  • Gender: 

    Male

Experiences: -9%

  • Age: 

    23-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Black

  • Gender: 

    Male

Gifts: -9%

  • Age: 

    23-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Hispanic/Black

  • Gender: 

    Male

Indulgences: -23%

  • Age: 

    18-22

  • Household Income: 

    $150K+

  • Ethnicity: 

    Black

  • Gender: 

    Male

Basic Needs: 27%

  • Age: 

    23-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Black

  • Gender: 

    Male

Experiences: 7%

  • Age: 

    23-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Hispanic

  • Gender: 

    Male

Gifts: 3%

  • Age: 

    23-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    White

  • Gender: 

    Male

Indulgences: -4%

  • Age: 

    23-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Hispanic

  • Gender: 

    Male

Basic Needs: 25%

  • Age: 

    23-35

  • Household Income: 

    $100K+

  • Ethnicity: 

    Asian

  • Gender: 

    Male

Experiences: -1%

  • Age: 

    23-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Black

  • Gender: 

    Male

Gifts: 1%

  • Age: 

    23-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Black

  • Gender: 

    Male

Indulgences: -12%

  • Age: 

    23-35

  • Household Income: 

    $150K+

  • Ethnicity: 

    Black

  • Gender: 

    Male

Basic Needs: 20%

  • Age: 

    18-35

  • Household Income: 

    $75K

  • Ethnicity: 

    Hispanic

  • Gender: 

    Male

Experiences: -3%

  • Age: 

    18-35

  • Household Income: 

    $200K+

  • Ethnicity: 

    Hispanic

  • Gender: 

    Male

Gifts: -14%

  • Age: 

    18-22

  • Household Income: 

    $100K-149K

  • Ethnicity: 

    Black

  • Gender: 

    Male

Indulgences: -20%

  • Age: 

    23-25

  • Household Income: 

    $200K+

  • Ethnicity: 

    Black

  • Gender: 

    Male

26%
21%
27%
25%
20%
9%
7%
3%
1%
-9%
-1%
-3%
-5%
-9%
-14%
-12%
-23%
-4%
-12%
-20%

Basic

Experiences

Gifts

Indulgences

View Spring ‘22 Demographic Champions View Fall ‘22 Demographic Champions View Spring ‘23 Demographic Champions View Fall ‘23 Demographic Champions View Spring ‘24 Demographic Champions
Back

Consumer Spending Plans By Category

Respondents' spending priorities reflect a clear emphasis on necessities. Prioritized categories include food, hygiene, health, and pet supplies which consistently rank among the top 5 spending areas. However, even in some of these essential categories, consumers plan to reduce overall spending compared to Fall ‘23.

  • SPENDING PLANS BY CATEGORY
  • % Net More (More - Less)

22%

Fall ‘22

19%

Spring ‘23

25%

Fall ‘23

30%

Spring ‘24

6%

Fall ‘22

4%

Spring ‘23

11%

Fall ‘23

8%

Spring ‘24

3%

Fall ‘22

3%

Spring ‘23

11%

Fall ‘23

8%

Spring ‘24

-4%

Fall ‘22

0%

Spring ‘23

5%

Fall ‘23

-1%

Spring ‘24

-12%

Fall ‘22

-5%

Spring ‘23

-1%

Fall ‘23

-4%

Spring ‘24

-18%

Fall ‘22

-6%

Spring ‘23

-7%

Fall ‘23

-7%

Spring ‘24

-18%

Fall ‘22

-7%

Spring ‘23

-10%

Fall ‘23

-12%

Spring ‘24

-20%

Fall ‘22

-7%

Spring ‘23

-7%

Fall ‘23

-12%

Spring ‘24

-17%

Fall ‘22

-10%

Spring ‘23

-7%

Fall ‘23

-12%

Spring ‘24

-13%

Fall ‘22

-3%

Spring ‘23

-7%

Fall ‘23

-14%

Spring ‘24

-23%

Fall ‘22

-14%

Spring ‘23

-16%

Fall ‘23

-20%

Spring ‘24

-21%

Fall ‘22

-9%

Spring ‘23

-10%

Fall ‘23

-21%

Spring ‘24

-22%

Fall ‘22

-11%

Spring ‘23

-11%

Fall ‘23

-21%

Spring ‘24

-24%

Fall ‘22

-14%

Spring ‘23

-11%

Fall ‘23

-23%

Spring ‘24

-28%

Fall ‘22

-17%

Spring ‘23

-19%

Fall ‘23

-30%

Spring ‘24

-33%

Fall ‘22

-20%

Spring ‘23

-22%

Fall ‘23

-34%

Spring ‘24
Consumers are bracing to tighten belts, urging retailers to strategize for hesitancy this season and adapt promotions and inventory flexibly.

Inflation Pressure

Consumers have remained consistently concerned about inflation over the past year, with price expectations showing little variation across the last two survey cycles (Spring & Fall ‘23).

Price Expectations – Next 6 Months

  • EXPECT PRICES TO FALL
  • EXPECT PRICES TO RISE
  • EXPECT PRICES TO STAY THE SAME
7%
64%
29%
6%
67%
27%
6%
65%
29%
9%
65%
26%

Spring ‘24

Fall ‘23

Spring ‘23

Fall ‘22

7%
64%
29%
6%
67%
27%
6%
65%
29%
9%
65%
26%

Spring ‘24

Fall ‘23

Spring ‘23

Fall ‘22

Top 5 Categories

These categories are where respondents most commonly participate in rewards programs.

icon

food and
beverage

53%
icon

airline and
travel

37%
icon

apparel and
footwear

30%
icon

pet supplies

30%
icon

entertainment,
books and media

27%

Motivations for Loyalty Participation

Fall ‘23 Spring ‘24
Reedeemable rewards 36% 45%
Special programs
and discounts		 40% 30%
Exclusive access to
products and services		 18% 9%
Personalized
reccomendations or content		 4% 5%
Enhanced customer service 2% 4%
Reedeemable rewards 45%
Special programs
and discounts		 30%
Exclusive access to
products and services		 9%
Personalized
reccomendations or content		 5%
Enhanced customer service 4%
Reedeemable rewards 36%
Special programs
and discounts		 40%
Exclusive access to
products and services		 18%
Personalized
reccomendations or content		 4%
Enhanced customer service 2%
Spring '24 Fall '23
View More Details

Loyalty Participation

During this survey cycle, we again delved into consumers' engagement in loyalty/rewards programs. Our results show that the food and beverage industry ranks highest in popularity for loyalty/rewards programs, followed by the travel sector. Both cycles showed the primary driver behind joining these programs was the intention of saving money through promotions, discounts, or redeemable rewards.

View More Details

Why Consumers are Shopping Second Hand

More than half of consumers are still engaging in second-hand or resale shopping. Even among households with the highest income levels ($200K+ HHI), the primary motivation behind second-hand shopping remains saving on cost.

Consumers with $200K+ HHI

Fall '23

Where - outline and graph of house
Why - outline and graph of tree
I want to save
on cost:
57%
I want to find rare or
vintage luxury items:
44%
I Can Find Items No
Longer Sold by Retailer:
31%
I prefer the
experience:
24%
Environmental Impact:
21%
I want to save
on cost:
59%
I want to find rare or
vintage luxury items:
55%
I Can Find Items No
Longer Sold by Retailer:
48%
I prefer the
experience:
41%
Environmental Impact:
32%

Saving Plans

Consumers' cautious approach to spending is primarily fueled by rising prices, with a desire to build up their wealth as a secondary factor. Nearly half of the respondents stated that they couldn't spend as much as they'd prefer because they prioritize saving. Additionally, more than half of those prioritizing saving specified that they are saving for a particular purchase.

47%
of respondents are
prioritizing saving
Why are consumers prioritizing saving?
57%
prioritizing
savings for
future purchases
View Breakout
15%
concerned with job/income-loss
28%
prioritizing wealth creation and financial growth
27%
Specific purchase/
expense within the next year
30%
Specific
long-term expense

Social Media as a Purchasing Channel

Social media is a crucial shopping channel, especially among younger demographics. Nearly three-quarters of consumers under the age of 35 have purchased items through social media platforms, with just under half of these respondents making a social media purchase more than once a month.

social media devices abstract social media devices abstract

56% have previously used social media to make a purchase

Age Breakdown
Age Breakdown
Total 56%
18 - 22 73%
23 - 35 72%
36 - 55 60%
56 - 80 36%

29% make purchases on social media more than once per month

Age Breakdown
Age Breakdown
Total 29%
18 - 22 48%
23 - 35 48%
36 - 55 29%
56 - 80 11%
Age Breakdown
Age Breakdown

Digital Shopping
Interactions

Consumers indicate they are overwhelmingly in favor of the enhancements they encounter throughout the online shopping experience. Among them, by far the most favored is receiving product suggestions based on specific purchase history.

Net Positive Experiences (positive - negative)

Spring '24 Fall '23
Graph 1
Graph 2
Spring '24 Fall '23

Summer Sales Participation

Nearly 30% of consumers are still undecided about whether to shop summer sales, presenting retailers with the potentially lucrative opportunity to bring in the business of these uncertain shoppers.

31% Do not plan
to participate

29% Undecided

40% Plan to
participate

Household Income
Breakdown
$0-25K 34%
$25-50K 36%
$50-100K 40%
$100-200K 46%
$200K+ 48%

Vacation Plans

Despite spending declining overall, vacation spending has increased compared to last year. 56% of the respondents are planning to take a vacation this year, a 5% increase compared to last spring. The primary obstacle to vacationing this spring/summer is cost, cited by 40% of respondents.

56%
Taking A Vacation
  • 35%Took One Last Year
  • 21%Did Not Take One Last Year
Airplane Spring '24 Airplane Spring '23 Airplane Spring '22
activate breakout taking a vacations
activate breakout taking a vacations
44%
Not Taking A Vacation
  • 13%Took One Last Year
  • 31%Did Not Take One Last Year

Vacation Plans

Despite spending declining overall, vacation spending has increased compared to last year. 56% of the respondents are planning to take a vacation this year, a 5% increase compared to last spring. The primary obstacle to vacationing this spring/summer is cost, cited by 40% of respondents.

Spring '24

Spring '23

Spring '22

56%
Taking A Vacation
  • 35%Took One Last Year
  • 21%Did Not Take One Last Year
activate breakout taking a vacations
activate breakout taking a vacations
44%
Not Taking A Vacation
  • 13%Took One Last Year
  • 31%Did Not Take One Last Year
51%
Taking A Vacation
  • 27%Took One Last Year
  • 24%Did Not Take One Last Year
activate breakout taking a vacations
activate breakout taking a vacations
49%
Not Taking A Vacation
  • 10%Took One Last Year
  • 39%Did Not Take One Last Year
45%
Taking A Vacation
  • 24%Took One Last Year
  • 21%Did Not Take One Last Year
activate breakout taking a vacations
activate breakout taking a vacations
55%
Not Taking A Vacation
  • 13%Took One Last Year
  • 42%Did Not Take One Last Year

Contact Us

    Alvarez & Marsal is committed to protecting and respecting your privacy, and we’ll only use your personal information to administer your account and to provide the products and services you requested from us.


    Back to Top