According to the latest EY UK Future Consumer Index, UK consumers are increasingly prioritizing cost-of-living concerns over environmental issues. The index reveals that 62% of UK consumers are “extremely concerned” about the rising cost of living, leading them to prioritize affordability when making purchases. This shift in priorities is reflected in the decline of the “planet first” mindset among UK consumers, dropping from 24% to 13% between June 2022 and April 2023.
While environmental concerns may be taking a back seat, UK consumers are embracing technology more readily. The survey of 1,000 UK consumers found that 45% of respondents are comfortable with the use of artificial intelligence (AI). This indicates a growing acceptance and adoption of technological advancements in the shopping experience.
However, when it comes to financial concerns, UK consumers differ from their European counterparts. Only 50% of European consumers express the same level of worry about the cost of living, suggesting that UK consumers may face unique economic pressures.
Affordability is particularly important for low-income households, with 54% stating that it greatly influences their purchasing decisions. This represents a significant increase from 42% in the previous year. Middle-income consumers are also more attuned to affordability, with the percentage rising from 24% to 39%. This indicates a widespread focus on cost-effective purchasing decisions among UK consumers.
One of the reasons behind the decreased prioritization of environmental concerns is the high cost of sustainable products. The research indicates that 56% of respondents agree that these products are too expensive. Additionally, 71% of consumers see price as a deterrent to purchasing sustainable goods. This suggests that UK consumers are finding it difficult to justify the higher costs associated with eco-friendly products.
However, the research also highlights that frugal consumer behaviors are translating into green behaviors. About 68% of respondents reported engaging in environmental actions when it saves them money. This includes trends such as repairing items instead of replacing them, which has seen growth in recent years. This indicates that while environmental concerns may not be the primary focus for UK consumers, they are still willing to make sustainable choices when it aligns with their budgetary concerns.
Despite a resurgence in physical shopping and slower growth in online shopping, e-commerce remains an integral part of UK consumers’ habits. Furthermore, consumers are increasingly open to incorporating technology into their shopping experience. Almost half of the respondents expressed comfort with the use of AI to enhance their shopping experience, and 43% reported that they are comfortable using chatbots for customer queries. This demonstrates a growing acceptance of technological advancements in shaping the shopping experience for UK consumers.
However, there is still a lack of trust when it comes to sharing personal data. The number of consumers unwilling to share data in exchange for cheaper product recommendations increased from 32% in February 2022 to 41% in April 2023. This suggests that consumers are becoming more cautious about the use of their data, even when potential benefits are offered.
In conclusion, the EY UK Future Consumer Index highlights the prioritization of cost-of-living concerns among UK consumers, leading to a decline in the “planet first” mindset. However, consumers remain open to embracing technology, with AI and chatbots finding acceptance in the shopping experience. Trust in data sharing, on the other hand, remains a challenge for businesses seeking to personalize recommendations and offers.
Useful links:
1. Government website on environment and countryside
2. Money.co.uk’s cost-of-living guide
